Nortek Parent NTK Holdings Faces Potential Default and Restructuring

Nortek's parent company, NTK Holdings, faces substantial uncertainty about its ability to meet debt obligations due in 2010, including a $147.4 million payment on March 1, 2010. The filing warns that a failure to make payments could lead to a restructuring of indebtedness, potentially resulting in a change of control of Nortek, and that such a restructuring may occur under court supervision.

“However, the conditions noted below create uncertainty about Nortek’s parent company’s, NTK Holdings, Inc. (“NTK Holdings”), ability to meet its debt obligations as they come due on March 1, 2010 and beyond and the implications of such non payments, including a possible change of control at Nortek, as discussed below.”

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