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Exhibit 99
FOR IMMEDIATE RELEASE
FOR MORE INFORMATION
CONTACT: WILLIAM HULL, CHIEF FINANCIAL OFFICER, 330-965-9910
SAMUEL MCNEIL, BANC OF AMERICA SECURITIES, 704-386-1758
AMERICAN ARCHITECTURAL PRODUCTS CORPORATION COMES TO
AGREEMENT IN PRINCIPAL WITH AD HOC BONDHOLDER COMMITTEE
MIAMI, FLORIDA, JULY 28, 2000 -- American Architectural Products Corporation
["AAPC" or "the Company"] announced today that it has reached an agreement in
principle for a consensual restructuring with the Unofficial Committee of
Noteholders representing the Company's $125 million Senior Notes due 2007. This
agreement provides for satisfaction of amounts owed to the Noteholders as
follows:
- By January 31, 2001 (subject to certain extensions), the Company would
pay the Noteholders a fixed cash settlement amount of 57.5% of the
outstanding principal amount of the Senior Notes. The Company believes
that this settlement will be approved by a substantial majority of the
remaining Noteholders.
- Management intends to fund the cash payment to the Noteholders through
the sale of the Eagle Window and Door, Inc. division to an outside
buyer as an operating concern. The Company may also sell other
assets as necessary to generate the necessary proceeds. In the event
the Company does not make the cash payment by January 31, 2001 (subject
to certain extensions), then the Noteholders would receive 100% of the
Company's equity in lieu of the cash payment.
- All trade vendors of AAPC will continue to be paid in full and in the
ordinary course of business. Additionally, there are no employee
layoffs planned.
"The understanding that we have agreed to with the Unofficial Committee of
Noteholders is a critical element to a sensible, workable restructuring plan
that will place AAPC on solid financial footing," said Joseph Dominijanni,
Interim President and CEO of AAPC. "We believe that this is a fair settlement
under the present circumstances, and it will allow us to more fully focus on
finalizing and executing a turnaround plan that will improve operations and
profitability. We are appreciative of the cooperation of the Unofficial
Committee of Noteholders and their advisors during this process."
The terms of the agreement are subject to execution and delivery of mutually
acceptable definitive documentation. Definitive documentation is now being
prepared, with execution by members of the Unofficial Committee anticipated to
take place in the next week. Subsequently, the Agreement will be circulated to
all other Noteholders in the interest of securing their approval.
Banc of America Securities LLC is advising AAPC regarding options relating to
refinancing, raising new capital, restructuring existing funded debt obligations
and potential sales of non-core assets.
AAPC is a manufacturer and distributor of a broadly diversified line of windows,
doors and related products designed to meet a variety of consumer demands in
both the new construction and repair/remodel markets, primarily for residential
uses. The Company has been formed through the consolidation of a number of
well-established companies, with varying manufacturing histories dating back to
1946. AAPC distributes its products regionally throughout the United States
under a number of well-established brand names that are recognized for their
quality, value engineering and customer service.
The matters discussed herein are "forward-looking statements" within the meaning
of the Private Securities Litigation Reform Act of 1995. Such forward-looking
statements are subject to risks,
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uncertainties and other factors that could cause actual results to differ
materially from future results expressed or implied by such forward-looking
statements. For additional information about the Company and its various risk
factors, see the Company's filings with the Securities and Exchange Commission.
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