Dayton Superior Corporation announced that it has decided to pursue its previously announced debt restructuring efforts under court protection by filing a voluntary petition for reorganization under chapter 11 of the US Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware in Wilmington.

Mr Eric R Zimmerman president & CEO of Dayton Superior said that "We had sincerely hoped to restructure our debt outside of the court. However, in light of the unprecedented tight credit markets, we determined that this filing is the best possible course of action to achieve a sustainable long term financial structure and secure the Company’s future growth and profitability. We will pursue a consensual plan of reorganization and debt restructuring under court protection while maintaining normal business operations."

Dayton Superior said that it has arranged for a 12 month debtor in possession credit facility from GE Capital of up to USD 165 million. The DIP facility will replace the company’s existing USD 150 million revolving credit facility. The DIP facility will provide immediate liquidity to the Company to help fund operations during the reorganization, subject only to court approval and other customary conditions. The Company will seek prompt court approval of the DIP facility and authority to continue operating its business and serving its customers in the ordinary course, including the authority to make wage and salary payments to employees and to continue to make payments to suppliers.

In the court filing, the company listed assets of USD 286 million against liabilities of USD 413 million. Liabilities include approximately USD 161 million in principal and accrued interest on the company’s 13% Senior Subordinated Notes due 2009 and USD 222 million in outstanding borrowings under the Company’s senior secured credit facilities.