================================================================= GENTEK BANKRUPTCY NEWS Issue Number 1 ----------------------------------------------------------------- Copyright 2002 (ISSN XXXX-XXXX) October 13, 2002 ----------------------------------------------------------------- Bankruptcy Creditors' Service, Inc. 609-392-0900 FAX 609-392-0040 ----------------------------------------------------------------- GENTEK BANKRUPTCY NEWS is published by Bankruptcy Creditors' Service, Inc., 24 Perdicaris Place, Trenton, New Jersey 08618, on an ad hoc basis (generally every 10 to 20 days) as significant activity occurs in the Debtors' cases. New issues are prepared by Christopher G. Patalinghug, Frauline Sinson-Abangan, and Peter A. Chapman, Editors. Subscription rate is US$45 per issue. Any re-mailing of GENTEK BANKRUPTCY NEWS is prohibited. ================================================================= IN THIS ISSUE ------------- [00000] HOW TO SUBSCRIBE TO GENTEK BANKRUPTCY NEWS [00001] BACKGROUND & DESCRIPTION OF GENTEK & ITS AFFILIATES [00002] CONSOLIDATED BALANCE SHEET AT JUNE 30, 2002 [00003] COMPANY'S PRESS RELEASE ANNOUNCING CHAPTER 11 FILING [00004] GENTEK & DEBTOR AFFILIATES' CHAPTER 11 DATABASE [00005] CONSOLIDATED LIST OF THE 39-LARGEST UNSECURED CREDITORS [00006] ORGANIZATIONAL MEETING WITH US TRUSTEE TO FORM COMMITTEES [00007] DEBTORS' MOTION FOR AUTHORITY TO USE CASH COLLATERAL KEY DATE CALENDAR ----------------- 10/11/02 Voluntary Petition Date 10/15/02 Emergency Cash Collateral Hearing at 2:30 p.m. 10/31/02 Deadline to provide Utilities with adequate assurance 11/10/02 Deadline for filing Schedules of Assets and Liabilities 11/10/02 Deadline for filing Statement of Financial Affairs 11/10/02 Deadline for filing Lists of Leases and Contracts 12/10/02 Deadline to make decisions about lease dispositions 01/09/03 Deadline to remove actions pursuant to F.R.B.P. 9027 02/08/03 Expiration of Debtors' Exclusive Plan Proposal Period 04/09/03 Expiration of Debtors' Exclusive Solicitation Period 10/10/04 Deadline for Debtors' Commencement of Avoidance Actions Organizational Meeting with UST to form Committees Bar Date for filing Proofs of Claim First Meeting of Creditors pursuant to 11 USC Sec. 341 ----------------------------------------------------------------- [00000] HOW TO SUBSCRIBE TO GENTEK BANKRUPTCY NEWS ----------------------------------------------------------------- GENTEK BANKRUPTCY NEWS is distributed to paying subscribers by electronic mail. New issues are published on an ad hoc basis as significant activity occurs (generally every 10 to 20 days) in the Debtors' cases. The subscription rate is US$45 per issue. Newsletters are delivered via e-mail; invoices, transmitted following publication of each newsletter issue, arrive by fax. Re-mailing of GENTEK BANKRUPTCY NEWS is prohibited. Distribution to multiple individuals at the same firm is provided at no additional charge; folks outside of your firm should set-up and pay for their own subscriptions. Subscriptions may be canceled at any time without further obligation. To continue receiving GENTEK BANKRUPTCY NEWS, please complete the form below and return it by fax or e-mail to: Bankruptcy Creditors' Service, Inc. 24 Perdicaris Place Trenton, NJ 08618 Telephone (609) 392-0900 Fax (609) 392-0040 E-mail: peter@bankrupt.com We have published similar newsletters tracking billion-dollar insolvency proceedings since 1990, starting with Federated Department Stores. 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Name: ---------------------------------------------- Firm: ---------------------------------------------- Address: ---------------------------------------------- ---------------------------------------------- Phone: ---------------------------------------------- Fax: ---------------------------------------------- E-Mail: ---------------------------------------------- (Distribution to multiple professionals at the same firm is provided at no additional cost.) GENTEK BANKRUPTCY NEWS is distributed to paying subscribers by electronic mail. New issues are published on an ad hoc basis as significant activity occurs (generally every 10 to 20 days) in the Debtors' cases. The subscription rate is US$45 per issue. Newsletters are delivered via e-mail; invoices, transmitted following publication of each newsletter issue, arrive by fax. Re-mailing of GENTEK BANKRUPTCY NEWS is prohibited. Distribution to multiple individuals at the same firm is provided at no additional charge; folks outside of your firm should set-up and pay for their own subscriptions. Subscriptions may be canceled at any time without further obligation. ----------------------------------------------------------------- [00001] BACKGROUND & DESCRIPTION OF GENTEK & ITS AFFILIATES ----------------------------------------------------------------- GenTek, Inc. Liberty Lane Hampton, NH 03842 Telephone (603) 929-2264 Fax (603) 929-2649 http://www.gentek-global.com GenTek, Inc. (OTC:GNKI) is a technology-driven manufacturer of communications products, industrial components and performance chemicals. The Company operates through three primary business segments: (1) communications -- serving the public telecom and the private enterprise network markets; (2) manufacturing -- serving the automotive, appliance and electronic and industrial markets; and (3) performance products -- serving customers in many industries including the environmental services, pharmaceutical and personal care, technology and chemical processing markets. The Company's products are frequently highly engineered and are important components of, or provide critical attributes to, its customers' end products or operations. The Company operates over 80 manufacturing and production facilities located primarily in the U.S. and Canada, with additional facilities in Australia, Austria, China, Germany, Great Britain, India, Indonesia, Ireland and Mexico. _________________ | The communications segment is a global provider Communications | of products, systems and services for local and Segment | wide area data and communications networks. | These products and services use and build on 25% of | the throughput-enhancing signal acquisition, Annual Revenues | analysis and transmission technology that the | Company has developed, and include throughput- $300,000,000 | optimized copper and fiber-optic cabling and Business | connectivity products for both public and _________________| private enterprise networks, as well as design, installation and maintenance services for wide- area wireline and wireless networks. The Company competes in the global markets for telecommunications and data networking equipment and services, particularly the public telecom (or access) and private enterprise (or premise) segments of these markets. The public telecommunications network is comprised of the long-haul network (long distance copper and fiber cables), the metro area (city wide) network, and the access portion of the network. This access portion consists of the telecommunications central office, remote terminals and the local loop also known as the "last mile." The local loop links the enterprise customer's home or office to the metro area and the long-haul portions of the public network. The enterprise segment of the market consists of the networks located within the customer's (or end-user's) premises. The communications segment's customers include Fortune 1000 companies, incumbent local exchange carriers (ILECs), competitive local exchange carriers (CLECs), internet service providers (ISPs), management service providers (MSPs), data networking equipment distributors, government institutions, public utilities and academic institutions. _________________ | The manufacturing segment provides a broad Manufacturing | range of engineered components and services to Segment | three principal markets: | 44% of | * automotive; Annual Revenues | | * appliance and electronic; and $500,000,000 | Business | * industrial. _________________| Automotive. For the automotive market, the Company provides: o precision-engineered components for valve-train systems, including stamped and machined rocker and roller-rocker arms, cam follower rollers, cam follower roller axles, antifriction bearings and other hardened/machined components; o electronic wire and cable assemblies, such as wire harnesses, ignition cables, molded parts, electro- mechanical assemblies, engine block heaters, battery blankets and various electrical switches, used in the manufacture of automobiles, light and heavy duty trucks and personal recreation vehicles such as snowmobiles and jet-skis; o computer-aided and mechanical vehicle and component testing services for the transportation industry; and o fluid transport and handling equipment for automotive service applications. The Company's precision-engineered stamped and machined engine components for valve-train systems improve engine efficiency by reducing engine friction and component mass. These components are used both in traditional overhead valve and in the increasingly popular single and double overhead cam (OHC) engines which power cars, light trucks and sport utility vehicles. The increased use of these OHC engines has resulted in significant volume growth through market share gains, as vehicle manufacturers are able to obtain better fuel economy and higher horsepower using OHC engines. The Company's wire and cable assembly products include a variety of automotive electronic components for use in OEM production and the aftermarket. The Company is a leading Tier-2 supplier of products such as wire harnesses, ignition cables, engine block heaters, battery blankets and various electrical and electro-mechanical switches and assemblies. Through its automotive testing offerings, the Company provides mechanical testing services and computer-aided design, engineering and simulation services for automotive structural and mechanical systems to OEMs and Tier 1 suppliers. The Company provides a wide range of testing services for automotive components and systems from single sub-systems, such as chassis, suspension, seats and seating assemblies, to entire vehicles. The Company's engineering and simulation services provide customers with finite element modeling, kinematics, crash and variation simulation analyses, experimental dynamics and vehicle development programs, and allow its customers to test their automotive products for durability, stress, noise, vibration and environmental considerations. Automotive manufacturers generally award business to their suppliers by individual engine line or model, often for multiple- model years. The loss of any individual engine line or model contract would not be material to the Company. However, an economic downturn in the automotive industry as a whole or other events (e.g., labor disruptions) resulting in significantly reduced operations of any of DaimlerChrysler, Ford or General Motors could have a material adverse impact on the results of the Company's manufacturing segment. None of these customers accounted for 10 percent or more of the Company's revenues in 2001. Appliance and Electronic. The Company produces custom- designed power cord systems and wire and cable assemblies for a broad range of appliances and electronic products including: o household appliances, such as refrigerators, freezers, dishwashers, washing machines, ovens, ranges and vacuum cleaners; o electronic office equipment, including copiers and printers; and o various electronic products, such as medical equipment, ATM machines and gaming machines. The Company's specialized wiring expertise and high quality wire and cable assemblies are generally provided to larger OEM customers. A highly competitive environment has required the Company's customers to improve their productivity by outsourcing to lower cost suppliers. The Company's manufacturing facilities are strategically located in both Canada and Mexico, permitting the Company to share with customers efficiencies gained through its operating scale and lower costs. The Company also owns a 50% interest in PrettlNoma Systems GmbH, a joint venture that produces modular control panel systems for consumer appliance manufacturers. PrettlNoma Systems is based in Neuruppin, Germany and, in addition, operates facilities in Mexico, Poland and Turkey. Industrial. For the industrial market, the Company manufactures: o custom-designed wire harness and power cord systems for power tools, motors, pumps and other industrial products; and o wire and cable for industrial markets, the commercial and residential construction industries and for a wide variety of end market uses by OEMs. The Company produces a broad product line of single and multi conductor wire and cable, wire harnesses and power cord systems. The Company's wire jacketing expertise includes the use of polyvinyl chloride (PVC), rubber, thermoplastic elastomer (TPE) and cross-link compounds. _________________ | The performance products segment provides a Performance | broad range of value-added products and Products | services to four principal markets: Segment | | * environmental services; 31% of | Annual Revenues | * pharmaceutical and personal care; | $350,000,000 | * technology; and Business | _________________| * chemical processing. Environmental Services. With a network of 37 plants strategically located throughout the United States and Canada, the Company is the largest North American producer of aluminum sulfate, or "alum," which is used as a coagulant in potable water and waste water treatment applications, and a leading supplier of ferric sulfate and other specialty flocculents (polymer-based materials used for settling and separating solids from liquids). The Company's water treatment products and services are designed to address the important environmental issues confronting its customers. These value-added products and services provide cleaner drinking water, restore algae-infested lakes, reduce damaging phosphorus runoff from agricultural operations, and significantly reduce pollution from industrial waste water. In the environmental market, the Company also provides sulfuric acid regeneration services to the refining and chemical industries, and pollution abatement and sulfur recovery services to selected refinery customers. Refineries use sulfuric acid as a catalyst in the production of alkylate, a gasoline blending component with favorable performance and environmental properties. The alkylation process contaminates and dilutes the sulfuric acid, thereby creating the need to dispose of or regenerate the contaminated acid. The Company transports the contaminated acid back to the Company's facilities for recycling and redelivers the fresh, recycled acid back to customers. This "closed loop" process offers customers significant savings versus alternative disposal methods and also benefits the environment by significantly reducing refineries' waste streams. Similar regeneration services are provided to manufacturers of ion exchange resins and silicone polymers. Pharmaceutical and Personal Care. The Company is a leading supplier of the active chemical ingredients used in the manufacture of over-the-counter (OTC) antiperspirants and antacids, and also supplies active ingredients used in prescription pharmaceuticals, nutritional supplements, nutraceuticals, veterinary health products and other personal care products. Technology. The Company provides ultrahigh-purity electronic chemicals for the semiconductor and disk drive industries. The Company's electronic chemicals include ultrahigh-purity acids, caustics, solvents, etchants and formulated photo ancillaries for use in the manufacture of semiconductor processing chips and computer disk drives. Chemical Processing. The Company manufactures a broad range of products that serve as chemical intermediates in the production of such everyday products as newspapers, tires, paints, dyes and carpets. The Company produces: o alum and polymer-based enhanced coagulants used in paper manufacturing to impart water resistance; o sodium and ammonia sulfites used to produce fixing and developing solutions for conventional film and x-ray processing; o sodium nitrite, of which the Company is one of only two North American producers, primarily used as a reactant in the manufacture of dyes, pigments and rubber processing chemicals; o potassium fluoride and fluoborate derivatives sold into the metal treatment, agrochemical, surfactant and analytical reagent markets; and o sulfuric acid, which is used in the manufacture of titanium pigments, fertilizers, synthetic fibers, steel, petroleum and paper, as well as many other products. ----------------------------------------------------------------- [00002] CONSOLIDATED BALANCE SHEET AT JUNE 30, 2002 ----------------------------------------------------------------- GENTEK INC. CONSOLIDATED BALANCE SHEETS At June 30, 2002 ASSETS Current assets: Cash and cash equivalents.............. $ 139,973,000 Receivables, net....................... 198,824,000 Inventories............................ 106,253,000 Deferred income taxes.................. 1,638,000 Other current assets................... 16,286,000 -------------- Total current assets............... 462,974,000 Property, plant and equipment, net........... 346,618,000 Goodwill, net of amortization................ 337,600,000 Deferred income taxes........................ 30,695,000 Other assets................................. 41,667,000 -------------- Total assets....................... $1,219,554,000 ============== LIABILITIES AND EQUITY (DEFICIT) Current liabilities: Accounts payable....................... $ 96,674,000 Accrued liabilities.................... 137,383,000 Current portion of long-term debt...... 781,548,000 -------------- Total current liabilities.......... 1,015,605,000 Long-term debt............................... 201,306,000 Other liabilities............................ 239,089,000 -------------- Total liabilities.................. 1,456,000,000 -------------- Equity (deficit): Preferred Stock, $.01 par value; authorized 10,000,000 shares; none issued or outstanding.......... -- Common Stock, $.01 par value; authorized 100,000,000 shares; issued: 20,736,376 shares........... 207,000 Class B Common Stock, $.01 par value; authorized 40,000,000 shares; issued and outstanding: 4,750,107 shares.................... 48,000 Paid in capital........................ 3,782,000 Accumulated loss....................... (13,951,000) Accumulated deficit.................... (225,287,000) Treasury stock, at cost: 149,889 shares...................... (1,245,000) -------------- Total equity (deficit)............. (236,446,000) -------------- Total liabilities and deficit...... $1,219,554,000 ============== ----------------------------------------------------------------- [00003] COMPANY'S PRESS RELEASE ANNOUNCING CHAPTER 11 FILING ----------------------------------------------------------------- GenTek Files Voluntary Petition for Reorganization Under Chapter 11 Of the U.S. Bankruptcy Code to Facilitate Restructuring Normal Worldwide Operations to Continue PARSIPPANY, New Jersey -- October 11, 2002 -- GenTek Inc. (OTC Bulletin Board: GNKI), a technology-driven manufacturer of telecommunications and other industrial products, announced that the Company and certain of its direct and indirect subsidiaries in the United States and Canada have filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware. The Company believes that the protection afforded by a Chapter 11 filing best preserves its ability to continue to serve its customers and preserve the value and goodwill of its businesses, while it implements a new strategic plan to deleverage the Company's balance sheet and create an improved long-term capital structure. The Company emphasized that the decision to file for Chapter 11 protection does not relate to the company's operations, which remain cash positive. The Company believes that its available cash of approximately $110 million and continued cash flow from operations should be adequate to fund ongoing operations and meet all anticipated obligations to customers, vendors and employees during the Chapter 11 process, and that it will therefore have no foreseeable need for debtor-in-possession financing. GenTek's strong cash position permitted it to make approximately $32 million of principal and interest payments under the Company's current credit agreements in the past two weeks. GenTek expects to continue its normal worldwide operations without any adverse impact on its ability to serve customers in the United States and overseas. The Company has implemented appropriate measures, such as building supplemental inventory, designed to ensure uninterrupted deliveries to meet the needs of its customers. Like many other companies in the telecom sector, GenTek has had to contend with a severe and prolonged downturn in capital spending by telecom carriers and OEMs (original equipment manufacturers), as well as adverse conditions in the credit markets. The Company previously announced that it was in discussions with its senior bank lenders and an ad hoc committee of holders of its 11 percent Senior Subordinated Notes relating to a potential restructuring plan. These discussions are continuing and are expected to continue during the Chapter 11 process. The filing of a bankruptcy petition results in an immediate acceleration of the Company's senior credit facility and 11 percent Senior Subordinated Notes. The Chapter 11 filing includes the Company's Canadian subsidiary Noma Company, but does not include any other Canadian or other non-U.S. subsidiaries. ----------------------------------------------------------------- [00004] GENTEK & DEBTOR AFFILIATES' CHAPTER 11 DATABASE ----------------------------------------------------------------- Debtor Entities Filing Separate Chapter 11 Petitions: Case No. Debtor Entity -------- ------------- 02-12986 GenTek Inc. 02-12987 Balcrank Products Inc. 02-12988 Big T-2 Company LLC 02-12989 Binderline Draftline, Inc. 02-12990 Con-X Corporation 02-12992 Definace, Inc. 02-12993 Definace Kinematics Inc. 02-12994 Defiance Precision Products, Inc. 02-12996 Defiance Precision Products Management LLC 02-12997 Defiance Precision Products Manufacturing LLC 02-12998 Defiance Testing & Engineering Services, Inc. 02-12999 Electronic Interconnect Systems, Inc. 02-13000 Fini Enterprises, Inc. 02-13001 General Chemical Corporation 02-13002 HN Investment Holdings Inc. 02-13003 Hy-Form Products, Inc. 02-13004 Krone Digital Communications Inc. 02-13005 Krone Incorporated 02-13006 Krone International Holding Inc. 02-13007 Krone Optical Systems Inc. 02-13008 Krone USA, Incorporated 02-13009 Noma Corporation 02-13010 Noma O.P., Inc. 02-13011 PCT Mexico Corporation 02-13012 Printing Developments Inc. 02-13013 Reheis, Inc. 02-13014 Toledo Technologies Inc. 02-13015 Toledo Technologies Management LLC 02-13016 Toledo Technologies Manufacturing LLC 02-13017 Vigilant Networks 02-13018 Waterside Urban Renewal Corporation 02-13019 Noma Company Petition Date: October 11, 2002 Court: United States Bankruptcy Court District of Delaware Marine Midland Plaza Building 824 Market Street, Fifth Floor Wilmington, DE 19801 Bankruptcy Judge: The Honorable Mary F. Walrath Debtors' Counsel: D. J. Baker, Esq. Skadden, Arps, Slate, Meagher & Flom LLP Four Times Square New York, New York 10036 Telephone (212) 735-3000 Fax (212) 735-3244 - and - Mark S. Chehi, Esq. Jane M. Leamy, Esq. Skadden, Arps, Slate, Meagher & Flom LLP One Rodney Square P.O. Box 636 Wilmington, DE 19899-0636 Telephone (302) 651-3000 U.S. Trustee: Donald F. Walton Acting United States Trustee David Buchbinder, Esq. Office of the U.S. Trustee for Region III 844 King Street, Suite 2313 Lockbox 35 Wilmington, DE 19801 Telephone (302) 573-6491 Fax (302) 573-6497 ----------------------------------------------------------------- [00005] CONSOLIDATED LIST OF THE 39-LARGEST UNSECURED CREDITORS ----------------------------------------------------------------- Entity Nature of Claim Claim Amount ------ --------------- ------------ U.S. Bank Trust, N.A. Indenture Trustee for $200,000,000 Romano Peluso 11% Senior Sub. Notes 100 Wall Street New York, NY 10005 Tel: 212-361-3866 Fax: 212-514-6808 Ingalls & Snyder LLC Notes $34,000,000 Tom Boucher 61 Broadway New York, NY 10006 Tel: 212-269-7897 Fax: 212-269-4177 Prudential Capital Group Notes $31,985,000 Joshua Lipchin Four Gateway Center 100 Mulberry Street Newark, NJ 07102 Tel: 973-802-4984 Fax: 973-802-2333 Strong Capital Notes $20,850,000 Mike Schoeller 8700 East Vista Bonita Suite 264 Scottsdale, AZ 85255 Tel: 480-538-2806 Fax: 414-359-7910 Muzinith Notes $18,750,000 Brian Clapp 450 Park Avenue Suite 1804 New York, NY 10022 Tel: 212-888-1580 Fax: 212-888-4368 Blackrock Notes $8,150,000 Jeff Menspace 40 East 52nd Street New York, NY 10022 Tel: 212-754-5340 Fax: 212-754-8756 Goldman Sachs Asset Mgt. Notes $7,250,000 32 Old Slip, 24th Floor New York, NY 10015 Tel: 212-357-2737 Fax: 212-346-2810 Bank of Montreal Notes $7,000,000 Monica Bonar Three Times Square New York, NY 10036 Tel: 212-605-1674 Fax: 212-605-1455 Trust Company of the Notes $4,750,000 West Craig Rothmeyer 11100 Santa Monica Blvd. Suite 2000 Los Angeles, CA 90025 Tel: 310-235-5972 Fax: 310-235-5968 Gen Re New England Asset Notes $4,000,000 Andrew Brown Farmington, CT 06032 Tel: 860-409-3272 Fax: 860-676-8712 Indosuez Capital Notes $3,500,000 Chet Malhotra 666 Third Avenue 9th Floor New York, NY 10017 Tel: 646-658-2243 Fax: 646-658-2274 Cincinnati Financial Notes $2,500,000 Corp. Steve Soloria 6200 South Gilmore Road Fairfield, OH 45014 Tel: 513-870-4620 Fax: 513-870-0609 Ralph M. Passino Other $1,847,000 15 Jonathan Smith Road Morristown, NJ 10006 Tel: 212-858-8352 Fax: 212-857-8384 Royal Bank of Canada Notes $1,800,000 165 Broadway, 5th Floor New York, NY 10006 Tel: 212-858-8352 Fax: 212-858-8284 James N. Tanis Other $1,700,000 430 Spring Road Ridgefield, CT 06877 Packard Electric Company Trade debt $1,674,000 Harry Liguore Global Packaging Manager Delphi PO Box 431 Mail Stop 50H Warren, Ohio 44486 Tel: 330-505-3072 Fax: 330-505-3180 Ares/Apollo Management Notes $1,500,000 1999 Avenue of the Stars Suite 1900 Los Angeles, CA 90067 Tel: 310-201-4228 Fax: 310-201-4171 Tyco Electronics Corp. Trade debt $1,499,000 Jack Warren PO Box 3608 Harrisburg, PA 17105 Tel: 717-985-2425 Fax: 717-592-5185 Chartwell Investment Notes $1,250,000 Partners Andy Toburen 1235 Westlake Drive Suite 400 Berwyn, PA 19312 Tel: 610-407-4849 Fax: 610-296-1430 James A. Wilkinson Other $1,126,000 5285Riegels Harbor Road Sarasota, FL 34242 Bo Klink Other $1,033,000 253 Island Green #20 Penrbrook, VA 24137 Alcoa Trade Debt $876,000 10th Floor 8550 West Bryn Mawr Avenue Chicago, IL 60631 Tel: 1-800-323-9661 Fax: 773-380-6218 International Wire Trade Debt $874,000 Charles Lovenguth PO Box 13643 Fort Wayne, IN 46865 Tel: 315-245-2000 Fax: 315-245-1916 INA USA Corp. Trade Debt $767,000 Bruce Warmbold, Pres. 308 Springhill Farm Road Fort Mill, SC 29715 Universal Bearings, Inc. Trade debt $268,000 John Martin PO Box 710349 Cincinnati, OH 45271 Tel: 574-546-2261 Fax: 574-546-5085 The Torrington Co. Trade Debt $614,000 38701 Seven Mile Road Suite 200 Livonia, MI 48152 Tel: 735-462-4870 Fax: 734-462-1934 Southern Star Shipping Trade Debt $581,000 Co. 712 Fifth Avenue New York, NY 10019-41012 Tel: 212-554-0100 Fax: 212-957-1366 Polyone Corporation Trade Debt $566,000 Tom Taylor, Dir. Of Sales 775 East Highland Road Macedonia, OH 44056 Tel: 248-952-5956 Fax: 248-262-9985 Ovako Ajax, Inc. Trade Debt $556,000 PO Box 75140 Charlotte, NC 28275 Tel: 803-628-2310 Fax: 803-684-1000 Molex Inc. Trade Debt $436,000 Maria Romero 222 Wellington Court Lisle, IL 60532 Fax: 630-548-2858 Fax: 630-968-8356 De Amertek Corp. Inc. Trade Debt $436,000 Todd Williams PO Box 74385 Chicago, IL 60690-8385 Tel: 630-572-0800 Fax: 630-572-1183 Densimix Trade Debt $4349,000 3355 West Alabama Street Houston, TX 77227-7727 Tel: 713-627-1102 Fax: 713-450-1839 Metaldyne Sintered Trade Debt $340,000 Components Steve Krise, Plant Manager HCR-1 Box 138 Steis Drive Ridgeway, PA 15853-0249 Solvey Minerals Trade debt $297,000 Mike Wood 3333 Richmond Avenue Houston, TX 77098 Tel: 713-525-77098 Hampshire Chemical Corp Trade Debt $261,000 39 Old Ridgebury Road Danbury, CT 06817-0001 Tel: 800-232-2436 Fax: 603-886-1348 American Steel Treating, Trade Debt $242,000 Inc. DaimlerChrysler Trade Debt $240,000 Shell Chemical Company Trade Debt $237,000 Vopak (Univar) Trade Debt $234,000 ----------------------------------------------------------------- [00006] ORGANIZATIONAL MEETING WITH US TRUSTEE TO FORM COMMITTEES ----------------------------------------------------------------- The United States Trustee for Region III will contact each of the Debtors' largest unsecured creditors at the addresses provided by the Debtors to invite them to an organizational meeting for the purpose of forming one or more official committees of unsecured creditors. Official creditors' committees, organized by the U.S. Trustee under 11 U.S.C. Sec. 1102, ordinarily consist of the seven largest creditors who are willing to serve on a committee. Those committees have the right to employ legal and accounting professionals and financial advisors, at the Debtors' expense. They may investigate the Debtors' business and financial affairs. Importantly, official committees serve as fiduciaries to the general population of creditors they represent. Those committees will also attempt to negotiate the terms of a consensual chapter 11 plan -- almost always subject to the terms of strict confidentiality agreements with the Debtors and other core parties-in-interest. If negotiations break down, the Committee may ask the Bankruptcy Court to replace management with an independent trustee. If the Committee concludes reorganization of the Debtors is impossible, the Committee will urge the Bankruptcy Court to convert the chapter 11 cases to a liquidation proceeding. Typically, the U.S. Trustee convenes the organizational meeting within a week to 10 days following the commencement of a chapter 11 case. Creditors who do not send a representative to the organizational meeting typically are not appointed. Members of active prepetition noteholder and other ad hoc committees are frequently appointed to fill seats on official committees. Contact the U.S. Trustee's office at (302) 573-6491 to ascertain the time, date and place of this meeting. Immediately following the U.S. Trustee's determinations about how many official committees will be appointed and who will be appointed to each committee, the newly formed committees convene their initial meeting. The first order of business is to listen to the U.S. Trustee explain the powers and duties of the committee as a whole and members' individual responsibilities. The Committee will generally elect a chairman. Thereafter, the Committee typically conducts beauty pageants to select their legal and financial advisors. ----------------------------------------------------------------- [00007] DEBTORS' MOTION FOR AUTHORITY TO USE CASH COLLATERAL ----------------------------------------------------------------- GenTek, Inc., and Noma Company are borrowers under a credit agreement dated as of April 30, 1999, as amended and restated as of August 9, 2000 and as of August 1, 2001 backed by a consortium of lenders for which JPMorgan Chase Bank (formerly known as The Chase Manhattan Bank) serves as the administrative agent, The Bank of Nova Scotia, serves as Syndication Agent for the Lenders, and Deutsche Bank (formerly known as Bankers Trust Company), serves as Documentation Agent for the Lenders. The Lenders under that Credit Agreement extended certain loans, letters of credit and other financial accommodations to or for the benefit of the Debtors. Including Letters of Credit, the Debtors owe the Lenders $772,909,000 (plus accrued interest and applicable costs and fees under the Loan Documents) as of the Petition Date. All of the Debtors' Loan Obligations are secured by liens on and security interests in substantially all of the Debtors' assets and property. Those liens cover most of the Debtors' cash on hand and all amounts generated by the collection of accounts receivable, sale of inventory or other dispositions of the Prepetition Collateral. To pay for goods and materials to be delivered postpetition and that will need to paid for on a cash-on-delivery basis, the Debtors need access to that cash collateral. Because the Company is now in bankruptcy, 11 U.S.C. Sec. 363(a) prohibits the Debtors from dipping into the Lenders' cash collateral unless the Lenders consent or the Court authorizes such use, with or without a hearing. Prior to the Petition Date, the Debtors initiated talks with their Lenders. The Lenders have agreed to allow the Debtors to dip into their cash collateral. The Debtors ask Judge Walrath for her stamp of approval on a Stipulation memorializing that agreement. On am emergency basis, through October 18, 2002, the Debtors ask for authority to use up to $5,000,000 of the Lenders' cash collateral and grant dollar-for-dollar non-priming superpriority liens to the Lenders. Judge Walrath has scheduled an expedited hearing for at 2:30 p.m. in Wilmington on October 15, 2002, to consider the Debtors' emergency motion. The Debtors intend to bring a subsequent motion before the Bankruptcy Court seeking interim and final authority to use the Lenders' cash collateral throughout their chapter 11 cases and grant the Lenders additional adequate protection in exchange for their continued consent. Mark D. Collins, Esq., at Richards, Layton & Finger, P.A., in Wilmington, represents JPMorgan Chase Bank in the Debtors' chapter 11 cases. *** End of Issue No. 1 *** ------------------------------------------------------------------------- Peter A. Chapman peter@bankrupt.com http://bankrupt.com ------------------------------------------------------------------------- Recommended Reading: Professor Stuart Gilson's newest title, "Creating Value Through Corporate Restructuring: Case Studies in Bankruptcies, Buyouts, and Breakups." List Price: $79.95 -- Discounted to $55.96 at http://amazon.com/exec/obidos/ASIN/0471405590/internetbankrupt -------------------------------------------------------------------------