Wilton closes recapitalization, involuntary bankruptcy case withdrawn

By Caroline Salls

Pittsburgh, Oct. 13 - Wilton Holdings Inc. and its subsidiaries have completed a recapitalization under an agreement with their largest creditors, including an affiliate of TowerBrook Capital Partners LP and Deutsche Bank Trust Co. Americas, according to a news release.

As a result of this agreement, Wilton said TowerBrook and Deutsche Bank have withdrawn an involuntary Chapter 11 bankruptcy petition filed against Wilton Holdings on July 17 in the U.S. Bankruptcy Court for the District of Delaware.

Wilton said in a July news release that the involuntary filing was made as a result of loan covenant breaches.

According to the release, the completion of this recapitalization provides Wilton Holdings with an improved capital structure, a reduced debt burden, the ability to continue delivering products and service to customers every day and the opportunity to focus on growth over the long term.

As a result of this agreement, affiliates of TowerBrook and Deutsche Bank Trust are the new majority owners of Wilton Holdings.

Wilton said affiliates of GTCR Golder Rauner II, LLC will continue to hold a minority share of the business.

Wilton Holdings is the parent of Woodbridge, Ill.-based creative consumer products company Wilton Brands, Inc. The involuntary Chapter 11 case number was 09-12563.

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