Potential Chapter 11 Restructuring for Nortek

Nortek and NTK Holdings are considering a restructuring under a 'pre-packaged' plan of reorganization under Title 11 of the United States Bankruptcy Code. The company faces substantial debt service obligations and may not be able to make payments due in 2010.

“The discussions and negotiations are continuing and may result in, among other things: (1) a restructuring of the equity and debt of NTK Holdings and Nortek pursuant to a negotiated transaction or under a “pre-packaged” plan of reorganization under Title 11 of the United States Bankruptcy Code, (2) a change of control of Nortek as discussed further below and (3) events of default and cross defaults under certain of NTK Holdings’ and Nortek’s outstanding indebtedness depending on the future decisions to be made by NTK Holdings and Nortek, which may or may not result in the acceleration of substantially all of the Company’s indebtedness.”

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