In early 2002, RHI initiated the split from all its refractories companies in the USA due to asbestos-related problems. These companies were deconsolidated at December 31, 2001, and RHI successfully implemented the required capital restructuring.
As a result of the steps taken by the US management, North American Refractories Co. (NARCO) and Global Industrial Technologies Inc. (GIT) with the core companies Harbison-Walker and A.P.Green have been operating under Chapter 11 and reorganization proceedings since 2002.
Today, the plans of reorganization (PoR) for the NARCO and GIT groups were presented at the competent court in Pittsburgh. Thus another important step has been taken towards completing the Chapter 11 proceedings successfully.
The parties involved in the Chapter 11 proceedings, especially the former owners of the refractories companies, the court in Pittsburgh and RHI, are reviewing the legal and economic implications of the plans.
The scope and time at which RHI will be able to realize contractual claims for payments against parties involved will be determined in the course of this review.
Objections against the presented plans of reorganization can be lodged at court at any time until the confirmation hearing, the final hearing to be set by the court. Due to the complexity of the reorganization, the court review may take several months before a date is set for the confirmation hearing.
RHI continues to be confident that the development and conclusion of the Chapter 11 proceedings will not constitute a burden on the company’s financial performance and results.