Alkegen Enters Into Restructuring Support Agreement to Eliminate $3.1 Billion of Debt and Strengthen Financial Foundation

Restructuring Support Agreement receives overwhelming support of key financial stakeholders, including 99% of first lien and majority of second lien holders

Company secures approximately $315 million of committed new capital to support operations and position Alkegen for continued industry leadership

Restructuring transactions to be implemented through an expedited prepackaged chapter 11 process

Operations continue as usual throughout restructuring process with no anticipated disruption for customers, suppliers, or partners globally

IRVING, Texas--(BUSINESS WIRE)--Alkegen (the “Company”), a leading specialty materials manufacturer, today announced that it has entered into a Restructuring Support Agreement (the “RSA”) with a supermajority of its key financial partners that will significantly reduce the Company’s debt, strengthen its balance sheet, and position it for future growth.

Under the terms of the RSA, Alkegen has secured $315 million of new capital to support operations during the restructuring process and expects to eliminate approximately $3.1 billion of total debt. By proactively managing its capital structure, Alkegen expects to emerge with a significantly stronger balance sheet and approximately $200 million in available liquidity. Once implemented, the restructuring transactions outlined in the RSA will position Alkegen to invest in its long-term growth initiatives and continue to provide market-leading high-quality products, with approximately $70 million in capital improvements underway for 2026, and an additional approximately $300 million anticipated through 2030.

The restructuring transactions are expected to be implemented through expedited prepackaged chapter 11 cases, which are anticipated to be filed in the United States Bankruptcy Court for the Northern District of Texas in the coming days. In advance of the filing, Alkegen launched a solicitation process to begin formally recording votes on its prepackaged plan of reorganization and will complete solicitation during the chapter 11 cases.

“Today’s announcement marks an important step in strengthening Alkegen's financial foundation for the future,” said Brian Whittman, Chief Executive Officer of Alkegen. "This agreement has the overwhelming support of our financial partners, underscoring their confidence in our business and the critical role we play in the specialty materials industry. With a substantially stronger balance sheet and greater financial flexibility, Alkegen will be well-positioned to invest in innovation, support our customers, and execute ongoing strategic initiatives that will drive future growth. We are grateful to our employees for their continued dedication and to our customers, suppliers, and partners for their ongoing support.”

The RSA is the result of collaborative discussions with the Company's key financial stakeholders and reflects their confidence in Alkegen's business, differentiated product portfolio, and long-term potential. Upon completion of the restructuring process, Alkegen will be owned by a group of leading institutional investors.

Alkegen expects to complete the court-supervised process efficiently, in approximately 60 days. The Company will continue operating in the ordinary course throughout the restructuring process, with no anticipated disruption for employees, customers, suppliers, or business partners across global operations. All holders of non-debt general unsecured claims, including trade creditors, vendors, and suppliers, are unimpaired under the chapter 11 plan.

Additional information regarding the Company’s restructuring process is available at http://www.alkegen.com/financial-restructuring/. Stakeholders with questions can contact the Company’s solicitation agent, Kroll, at [phone] (US and Canada toll free) and [phone] (International), or [e-mail].

Advisors
Kirkland & Ellis LLP and Gray Reed are serving as legal counsel, Alvarez & Marsal is serving as financial advisor, Centerview Partners LLC is serving as investment banker, and C Street Advisory Group is serving as strategic communications advisor to the Company. Davis Polk & Wardwell LLP and PJT Partners are serving as advisors to the ad hoc group of lenders.

About Alkegen
Alkegen is a global leader in manufacturing high-performance fibrous materials, including refractory ceramic fiber, polycrystalline wool, aerogel composite and micro-fine glass, that are engineered into blankets, felts, papers, boards, complex shapes, and mats. Our products are used across steel and aluminum manufacturing, petrochemical refining, glass production, mineral processing, automotive emission control, electric vehicle and other battery safety, commercial building fire protection, aerospace insulation, advanced filtration, and other industries and applications. Alkegen leverages deep materials engineering expertise and high-specification manufacturing to deliver customized, mission-critical solutions that help the world breathe easier, live greener, and go further than ever before. Headquartered in Irving, Texas, the Company employs approximately 3,900 people across 23 countries and operates approximately 50 fully integrated global manufacturing facilities. More information is available at www.alkegen.com.