MARSHALL, Texas, Sept. 19 /PRNewswire-FirstCall/ -- North American Technologies Group Inc. (BULLETIN BOARD: NATK) (NATK), the worldwide leader in composite crossties through its wholly owned subsidiary TieTek, today announced it has restructured $25.5 million of debt and debentures. This debt restructuring is the latest in a series of positive developments for the company including significant revenue growth, improved manufacturing performance, and strengthened strategic customer relationships.
Under the terms of the new agreement, the amortization of principal for the $14 million of senior debt was deferred until July 1, 2008. Additionally, the maturity date of $11.5 million in convertible debentures was extended from December 31, 2006 to July 1, 2008. All of these debts will be reclassified as long-term liabilities in the company's financial statements.
"NATK debt and debenture holders recognized the current market opportunity and renewed financial discipline of the company," said NATK CEO, Neal Kaufman. "This restructuring gives NATK additional time to focus on growth and driving to profitability, and will maximize value for our customers and shareholders."
NATK, through its wholly owned subsidiary TieTek, designs, engineers, and manufactures structural composite crossties and switch ties using patented processes to recycle landfill-bound plastic, rubber and fiberglass. The products have been used in the largest railroads to carry over 1.5 billion gross tons with no degradation of performance or product impairment, regardless of environmental conditions. TieTek's products outperform and outlast traditional railroad tie materials and deliver compelling economic returns and performance benefits to TieTek's customers.
About NATK
NATK, through its wholly owned subsidiary TieTek, produces high- performance railroad ties. TieTek uses patented technology to process recycled plastics, used tires and other mineral fillers to manufacture engineered composite components that are a longer-lasting alternative to hardwood in structural applications. The Company's securities are quoted in the over-the-counter market under the symbol "NATK". The Company's website is found at: http://www.tietek.com/ .
Contact: North American Technologies Group, Inc.
Joelle Gropper, Investor Relations
Phone (713) 462-0303, x107
