CIRCOR Reports Progress on Leslie Controls Subsidiary’s Chapter 11 Reorganization Plan
October 11 2010 - 9:00AM
Business Wire
CIRCOR International, Inc. (NYSE:
CIR), today announced that its wholly owned subsidiary, Leslie
Controls, Inc., has obtained the asbestos claimant votes necessary
for approval of its pre-negotiated Chapter 11 reorganization plan,
which is a key step in the process toward Leslie’s emergence from
bankruptcy.
For the plan to be confirmed and affirmed by the courts, the
U.S. Bankruptcy Code requires a formal vote of approval by at least
75 percent of current asbestos claimants. The solicitation process
for this approval was completed on September 27, 2010, and on
October 8, 2010 the balloting agent tabulating the votes filed a
declaration with the U.S. Bankruptcy Court for the District of
Delaware stating that the percentage cast in favor of the plan
significantly exceeded this requirement.
CIRCOR’s Chairman, President and Chief Executive Officer Bill
Higgins said, “This vote of confidence is an important milestone in
our effort to permanently eliminate the expenses and risks
associated with Leslie’s asbestos liability. The proceedings in the
District and U.S. Bankruptcy Courts have continued to move forward
during the solicitation period for claimant approval. Although
objections have been filed by several of Leslie’s insurance
carriers, we believe these objections are without merit.
Consequently, we are continuing to target the plan’s confirmation
and affirmation by the court and Leslie’s emergence from bankruptcy
for the fourth quarter of 2010.”
Leslie’s plan of reorganization is intended to permanently
resolve the Company’s asbestos liability through the creation of a
trust pursuant to Section 524(g) of the U.S. Bankruptcy Code. All
current and future asbestos claims against Leslie would be
channeled to the trust for review and payment, thus providing both
Leslie and CIRCOR with permanent court protection from such claims.
Leslie is continuing to conduct business as usual during the
Chapter 11 process.
About CIRCOR International, Inc.
CIRCOR International, Inc. designs,
manufactures and markets valves and other highly engineered
products and subsystems that control the flow of fluids safely and
efficiently in the aerospace, energy and industrial markets. With
more than 9,000 customers in over 100 countries, CIRCOR has a
diversified product portfolio with recognized, market-leading
brands. CIRCOR’s culture, built on the CIRCOR Business System, is
defined by the Company’s commitment to attracting, developing and
retaining the best talent and pursuing continuous improvement in
all aspects of its business and operations. The Company’s strategy
includes growing organically by investing in new, differentiated
products; adding value to component products; and increasing the
development of mission-critical subsystems and solutions. CIRCOR
also plans to leverage its strong balance sheet to acquire
strategically complementary businesses. For more information, visit
the Company’s investor relations web site at http://investors.circor.com.
Safe Harbor Statement
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. Reliance should not be placed on forward-looking
statements because they involve unknown risks, uncertainties and
other factors, which are, in some cases, beyond the control of
CIRCOR. These statements include, but are not limited to, the
Company’s expectations related to the process for Leslie Controls’
emergence from bankruptcy, the Company’s belief that insurance
carriers’ objections to Leslie Controls’ Chapter 11 reorganization
plan are without merit, and the Company’s continuing to target the
plan’s confirmation and affirmation by the court and Leslie
Controls’ emergence from bankruptcy for the fourth quarter of 2010.
Actual events, performance or results could differ materially from
the anticipated events, performance or results expressed or implied
by such forward-looking statements. BEFORE MAKING ANY INVESTMENT
DECISIONS REGARDING OUR COMPANY, WE STRONGLY ADVISE YOU TO READ THE
SECTION ENTITLED "RISK FACTORS" IN OUR MOST RECENT ANNUAL REPORT ON
FORM 10-K AND SUBSEQUENT REPORTS ON FORMS 10-Q, WHICH CAN BE
ACCESSED UNDER THE "INVESTORS" LINK OF OUR WEBSITE AT
WWW.CIRCOR.COM. We undertake no obligation to publicly update or
revise any forward-looking statement, whether as a result of new
information, future events or otherwise.
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