International Aluminum Corp. has filed a Chapter 11 bankruptcy petition and entered into a restructuring agreement with holders of about 72 percent of its senior debt.
The private Monterey Park company, which makes aluminum and vinyl products such as windows, doors and framing, said operations would not be affected during the restructuring. Chief Executive Officer Dick Almy said the company’s ability to pay its bills had been hurt by the downturn in residential and commercial construction.
The company has 1,000 employees in 24 facilities throughout the United States and Canada. It has 226 employees in Los Angeles County.
“International Aluminum is a strong and viable company,” Almy said. “We believe that through this process the company will emerge stronger, more competitive, and unburdened by debt, allowing for future growth.”
The initial petition, filed Monday in U.S. Bankruptcy Court in Delaware, estimates the company has 1,000 to 5,000 creditors, liabilities between $100 million and $500 million and assets in the same range. The company’s Canadian subsidiaries are not included in the Chapter 11 filing.
The company said it is in a “very strong cash position” that would allow it to support day-to-day and ongoing operations, including paying vendors and suppliers for goods and services after the Chapter 11 filing. The proposed reorganization plan provides for full payment of all pre-filing claims of vendors and suppliers.
