November 18, 2009
Dear Valued TWI Supplier:
Today the Company announced that it has reached an agreement with its lenders to reduce its burdensome debt levels, significantly improve its capital structure and create financial flexibility. The restructuring is a necessary and positive step, which, in today's challenging environment, will re-align the Company's capital structure with current business operations.
To implement the restructuring, TWI and its domestic operations filed voluntary Chapter 11 petitions in the U.S. Bankruptcy Court. Our operations outside of the United States will continue their business operations without supervision from the U.S. courts and will not be subject to the Chapter 11 requirements of the Bankruptcy Code.
TWI has received a commitment for up to $20 million in debtor-in-possession (DIP) financing from a group of lenders led by GE Capital. Access to this financing, which requires court approval, means TWI has the ability to pay suppliers and employees in the ordinary course of business going forward.
The Company has already reached agreements in principle with its lenders and expects to move through the restructuring process quickly. We will work with key stakeholders over the next few months to expeditiously implement this plan.
With respect to our ongoing business relationship, the Company has requested authority to pay trade creditors under a variety of first day motions. The Company believes this action will allow it to assure customers an uninterrupted stream of product and eliminate any concerns they may have regarding the integrity of the supply chain. However, the various forms of authority requested only extend to trade vendors, some of which will be paid in the ordinary course and some of which will be paid in full once the Plan of Reorganization is confirmed, depending on the classification of their allowed claim. In addition to the special authority requested regarding any pre-petition outstanding balances, the Bankruptcy Code provides an Administrative Priority status for post-petition orders and shipments (goods and services received after the Chapter 11 filing date). Therefore, you can be assured that we can pay for the goods and services you provide to us after the November 18, 2009 filing date.
We are committed to the partnership we have developed with your organization and will continue to work closely with you during this restructuring process. The cooperation of all of our suppliers will allow us to continue serving our customers and will help ensure that our companies can continue working together for many years to come.
We will keep you informed as we reach important milestones in this process. In the meantime, if you have questions, please contact me or your regular representative or our toll-free restructuring information hotline at 866-431-8288 or 717-731-7999 if calling from outside the U.S.
Thank you for your support of TWI and all of its operating units during this process. We look forward to strengthening our relationship and to building a stronger future together.
Sincerely,
Bill Corbin
Chairman and Chief Executive Officer