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Nov. 16, 2010: Wolverine Tube Reaches Agreement to Restructure Debt

November 16, 2010
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HUNTSVILLE, Ala. - Wolverine Tube Inc., Tube Forming L.P., Wolverine Joining Technologies LLC, and WT Holding Company Inc. announced an agreement in principle with holders of the company’s notes on the terms of a financial restructuring to reduce the company’s indebtedness.

To implement the financial restructuring, Wolverine elected to file Chapter 11 petitions in the United States Bankruptcy Court for the District of Delaware to effectuate a prearranged plan of reorganization supported by Wolverine’s noteholders, which plan the company intends to file shortly. The company believes the filings will have little impact on its operations, and it will continue operations during the restructuring process. Wolverine expects to emerge from Chapter 11 within approximately 90 days.

The company believes its cash on hand, together with the cash generated from ongoing operations, will be sufficient to fund its normal business obligations through the financial restructuring.

“Once completed and approved by the Court, the financial restructuring will reduce the company’s debt by approximately $110 million, leaving Wolverine with $30 million of debt at much more attractive terms and a substantial positive shareholder’s equity,” said Steven S. Elbaum, chairman of Wolverine. “We are very pleased to have reached this agreement with noteholders. It is a very positive step for Wolverine, our customers, suppliers, and employees because it underscores confidence in Wolverine’s ability to achieve sustained profitable growth. Over the last three years Wolverine has successfully restructured its operations, improved its cost structure and competitiveness, and repaid a substantial amount of debt. It is highly focused on its core business and customers. The announced restructuring will firmly position Wolverine to successfully compete in the global markets it serves.

“On an operational level, Wolverine has a strong foundation in place with a cash position that is more than sufficient to run its business during this period,” added Elbaum. “A court-supervised process will accelerate - and finalize - Wolverine’s financial restructuring while ensuring that current business operations continue without impediment.”

For more information, visit www.wlv.com.

Publication date: 11/15/2010

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