Buxbaum Group News - November 9, 2005

FRESNO, Calif. (11/9/05)—With a confirmation hearing scheduled for December 1, 2005, the final day for receipt of ballots on the bankruptcy reorganization plan filed by Waterman Industries, Inc. has been set at November 28.

Waterman Industries’ First Amended Disclosure Statement and Plan were filed on October 25, 2005, following a hearing held on October 13 before Honorable Judge W. Richard Lee of the U.S. Bankruptcy Court, Eastern District of California, in Fresno. The Exeter, Calif.-based company filed for protection under Chapter 11 of the U.S. Bankruptcy Code on February 10, 2004 in Fresno. In April 2004, Pathway Strategic Partners, LLC, a corporate recovery consulting firm and subsidiary of Buxbaum Group, was approved by the Court to oversee the company’s restructuring. Established in 1912, Waterman is a leader in the water control equipment industry, manufacturing pipe valves, canal gates, sluice gates, filters and related accessories.

The debtor and secured lender Galena National Investments were Co-Proponents of the Disclosure Statement and Plan. Galena is successor in interest to Wells Fargo Bank and asserts a security interest in the vast majority of the debtor’s personal property assets. The plan provides for the sale of Waterman’s personal property assets to Galena National Investments and, subsequent to the effective date, the liquidation of remaining assets, prosecution of legal actions, settling of disputed claims, payment of Plan Expenses and distribution of proceeds to creditors.

“The restructuring of Waterman’s operations and business practices has propelled the company to a very healthy level of profitability,” noted Kenneth G. Leddon, Principal of Pathway Strategic Partners and Chief Restructuring Officer of Waterman. “The confirmation of this Plan should ensure a bright future for Waterman employees, suppliers and customers, while providing creditors with an optimal return from these circumstances.”

At the hearing, Riley Walter of Walter Law Group appeared for the debtor; Randy Rogers of Winston & Strawn LLP appeared for Galena National Investments, LLC; and Donald Fitzgerald of Feldstein, Fitzgerald, Willoughby & Pascuzzi LLP appeared for the Creditor Committee. In addition to Walter and Leddon, the debtor was represented at the hearing by Birchel Brown, Managing Director of Pathway Strategic Partners and Chief Operating Officer of Waterman Industries.

About Buxbaum Group - Buxbaum Group has built its reputation for over 30 years as one of the largest liquidators and appraisers of retail and wholesale inventories, as well as machinery and industrial equipment, across North America. While continuing to operate in those areas, the company has shifted its primary focus in recent years to turnaround investing along with specialty financing. Additionally, its Pathway Strategic Partners subsidiary provides turnaround, expansion and/or downsizing strategies, in conjunction with other advisory consulting and management services.

Press Contacts: At Parness & Associates Public Relations, Bill Parness or Lisa Kreda (732) 290-0121.