Zodiac Pool Solutions seeks Protection from the U.S. Bankruptcy Court

by San Antonio Attorney

Zodiac Pool Solutions is a supplier of swimming pool products. It is owned by international company Carlyle Group LP.  Zodiac stated up to $1 billion in assets and over $1 billion in debts in its Chapter 15 filing with the U.S. Bankruptcy Court in Wilmington, Delaware. Through a Chapter 15 bankruptcy case, the court provides protection for the U.S. assets of foreign businesses that are liquidating or reorganizing in another country, and also assist organize creditors and implement judgments from proceedings abroad.

Under a repayment arrangement in the U.K., Zodiac will pay 145 million-euro and certain debt maturities will be modified. Most of the company’s creditors voted in favor of the U.K. repayment plan, based on the U.S. court documents.

The company’s lawyer wrote in an email that Zodiac filed under Chapter 15 therefore, the debt adjustments are implemented in the U.S. He also said the business expects to maintain its strong revenue growth it has experienced in the past year.

According to court filings, Zodiac was affected by falling demand for its merchandise after the year 2007, and the situation was worsened by the 2008 economic collapse.

Court papers show that Zodiac was established when Carlyle and Zodiac Aerospace SA bought WaterPik Technologies Inc. in 2006. Three year after, Zodiac Aerospace offered its share in the company to Carlyle just two years after including its marine assets to the company.

Carlyle is a multi-billion dollar global investment manager. It has sold off other companies from 2008 to 2013, which includes WaterPik a year ago. After the sale, Zodiac has concentrated entirely on the swimming pool product business.

Chapter 15 bankruptcy was added to the Bankruptcy Code in 2005. The main objective of Chapter 15 is to encourage communication and collaboration between U.S. courts, foreign courts and other parties involved.

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