Issue Date: June 22, 2009
Georgia Gulf Wins Time From Creditors
Struggling chemical maker Georgia Gulf has negotiated with debt holders to delay payment of $34.5 million in bond interest, originally due on April 15, to July 15. It has also obtained a 30-day grace period on an additional $3.6 million originally due on June 15. The company has been extending repayments to creditors since July 2008 and says that if it loses access to funding, it might be forced to file for bankruptcy. In an attempt to pay down debt, Georgia Gulf has offered to exchange debt for common stock. But after six deadline extensions, debt holders have converted less than $30 million, or 4%, of the value of the outstanding notes. Georgia Gulf ran into financial troubles in 2006 when its $1.6 billion acquisition of building products maker Royal Group was followed by the downturn in the North American housing and construction markets.
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