LOUISVILLE, Ky., Sept. 26 /PRNewswire-FirstCall/ -- ThermoView Industries,
Inc. (Amex: THV), which designs, manufactures and markets home improvements,
today said the company and its subsidiaries filed to reorganize under Chapter
11 of the U.S. Bankruptcy Code on September 26, 2005. ThermoView and its
subsidiaries employ over 700 people in 17 states with corporate headquarters
located in Louisville.
The Company's bankruptcy filing was the result of increasing pressure from
high debt levels, including senior debt coming due in mid-2006. The Company
has been struggling to overcome these pressures for some time and had achieved
several financial restructures with its senior lenders in the last two years.
However, recent conditions had made it impossible to continue operating
outside of bankruptcy protection.
The Company enters Chapter 11 with an interested buyer, an affiliate of
Milestone Capital Management, LLC, which has already executed an Asset
Purchase Agreement with the Company, subject to the auction bidding process
and court approval. The Company also expects court approval of a $750,000
loan from an affiliate of Milestone Capital to shore up its liquidity during
the bankruptcy proceedings. The Company had been seeking various forms of a
restructure, including an infusion of capital, a buyout of the senior lenders'
positions, sale of part or all of the company's assets to a strategic buyer,
or an internal voluntary restructuring by all stakeholders.
Company officials stated they expect this financial restructuring to
result in ThermoView Industries becoming a stronger, more efficient company.
ThermoView CEO Charles L. Smith stated, "We voluntarily filed for
reorganization under Chapter 11 in the best interests of our customers,
suppliers and the 700 families of our ThermoView employees. It is our
intention and belief that we will continue to operate as near normally as
possible during this time. We will continue to perform all contracted work
and generally do whatever it takes to make our customers happy. It is crucial
to the success of our reorganization that we continue our high standards of
customer satisfaction throughout this process. We look forward to emerging
from this reorganization a stronger company with a promising future." Mr.
Smith further indicated that it would be contacting all vendors and other
business partners in the very near future about the details of continuing
relationships during and after the reorganization.
"We are thrilled to have the opportunity to work with the management team
of ThermoView to reorganize the company and emerge from bankruptcy," said
Murry N. Gunty, Managing Partner of Milestone Capital. "Unfortunately, though
the business is very sound, they were operating under a legacy capital
structure that inhibited the company's performance and opportunities for
growth. Upon completion of the transaction, we look forward to growing the
business with management."
ThermoView also stated that its Board of Directors resolved on September
22, 2005 to inform the American Stock Exchange that ThermoView would not be
able to regain compliance with the Exchange's continued listing standards
within the extension provided by the Exchange. As previously communicated,
ThermoView received notice from Exchange staff by letter of April 28, 2005
indicating that the Company was below certain of the Exchange's listing
standards. ThermoView was granted the opportunity to submit a plan of
compliance to the Exchange, and on May 31, 2005 presented its plan to the
Exchange. In a June 28, 2005 letter, the American Stock Exchange accepted
ThermoView's plan of compliance and granted the Company an extension of time
to regain compliance. However, the Company has today informed the Exchange of
its inability to regain compliance with the continued listing standards.
Recent charges for impairment of goodwill, as well as the Chapter 11
reorganization, ultimately necessitated this decision. The Company expects
the Exchange to begin delisting procedures immediately.
About ThermoView Industries, Inc.
ThermoView is a national company that designs, manufactures, markets and
installs high-quality replacement windows and doors as part of a full-service
array of home improvements for residential homeowners. ThermoView markets home
improvements in 17 Midwest and Western states under well-known regional home
center brands that include Thomas, Primax, Rolox, Leingang, ThermoView and
THV. All of these brands are consolidating under a national brand, "THV,
America's Home Improvement Company." Additional information is available at
http://www.thv.com.
Milestone Capital Management, LLC, is a Washington, DC based private
equity firm with $88 million of capital under management. Milestone seeks
investments in a range of industries, including manufacturing, distribution,
health care, restaurants and specialty retail. Additional information is
available at http://www.milestonedc.com.
Safe harbor statement
Statements in this news release that are not descriptions of historical
facts are forward-looking statements that are subject to risks and
uncertainties. Words such as "expect," "intends," "believes," "plans,"
"anticipates" and "likely" also identify forward-looking statements. All
forward-looking statements are based on current facts and analyses. Actual
results may differ materially from those currently anticipated due to a number
of factors including, but not limited to our history of operating losses,
anticipated future losses, competition, future capital needs, the need for
market acceptance, dependence upon third parties, disruption of vital
infrastructure, general economic downturn and intellectual property rights.
All forward-looking statements are made pursuant to the Securities Litigation
Reform Act of 1995. Additional information on factors that may affect the
business and financial results of the Company can be found in filings of the
Company with the Securities and Exchange Commission.
Contacts:
David A. Anderson, Chief Financial Officer, ThermoView Industries, Inc.,
502-968-2020.
SOURCE ThermoView Industries, Inc.
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Related links:
http://www.thv.com
http://www.milestonedc.com
CONTACT:
David A. Anderson, Chief Financial Officer of
ThermoView Industries, Inc., +1-502-968-2020
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