Black Diamond to buy PTC Alliance

PTC Alliance Corp., in Chapter 11 for the second time in four years, was authorized at an April 14 court hearing to sell the business to Black Diamond Capital Management LLC, PTC said in a statement.

PTC valued the sale to Lake Forest-based Black Diamond at $141.6 million, according to a court filing. The price includes $116.5 million by swapping a term loan and asset- backed loan, $500,000 cash, and the assumption of $24.6 million in debt.

The sale went through after the bankruptcy judge refused to sanction the first sale of assets. Once known as Pittsburgh Tube, Wexford, Pennsylvania-based PTC makes welded and cold- drawn steel tubing.

PTC confirmed a prepackaged Chapter 11 plan in May 2006 that paid unsecured creditors in full while existing first-lien debt was converted to second-lien term notes. The subordinated debt became third-lien notes that paid interest with more notes. Preferred shareholders received new common equity.

The return to bankruptcy followed a drop in sales accompanying the recession. The company said that debt exceeds assets by $64.7 million. On Dec. 31, 2008, assets were $274 million while debt totaled $294 million.

PTC has $181 million in secured debt, mostly owing to Black Diamond.

The case is In re PTC Alliance Corp., 09-13395, U.S. Bankruptcy Court, District of Delaware (Wilmington).