Note 18-Guarantor and Non-guarantor Financial Statements

Our senior secured notes are, jointly and severally, fully and unconditionally guaranteed, on a senior basis, by all of our existing and future 100% owned domestic subsidiaries (“Guarantor Subsidiaries”). The non-guarantor subsidiaries are our foreign subsidiaries and discontinued operations. The following condensed financial information illustrates the composition of the combined Guarantor Subsidiaries:

CONDENSED CONSOLIDATING BALANCE SHEETS

	Successor December 31, 2011
(in thousands)	Parent		Guarantor Subsidiaries			Non-guarantor Subsidiaries		Eliminations			Total
ASSETS
Cash and cash equivalents	$	51,578	$	(2,770	)	$	8,107		-		$	56,915
Accounts and other receivables, net		36,736		100,097			12,099	$	(50,857	)		98,075
Inventories		26,655		39,555			6,617		-			72,827
Other current assets		4,441		5,771			2,120		-			12,332
Total current assets		119,410		142,653			28,943		(50,857	)		240,149
Property, plant, and equipment, net		73,765		150,900			46,897		-			271,562
Goodwill		96,283		67,253			-		-			163,536
Intangible assets, net		139,384		41,965			-		-			181,349
Investments in and advances to subsidiaries and affiliates		281,552		-			-		(281,552	)		-
Other non-current assets		9,880		8,883			1,649		(8,146	)		12,266
TOTAL	$	720,274	$	411,654		$	77,489	$	(340,555	)	$	868,862
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable	$	17,615	$	52,938		$	9,708		-		$	80,261
Accrued payroll and compensation		3,079		9,167			4,220		-			16,466
Accrued interest payable		12,503		-			-		-			12,503
Accrued and other liabilities		52,932		13,542			3,642	$	(50,857	)		19,259
Total current liabilities		86,129		75,647			17,570		(50,857	)		128,489
Long term debt		323,082		-			-		-			323,082
Deferred and non-current income taxes		37,045		-			-		(8,146	)		28,899
Other non-current liabilities		16,635		91,447			22,927		-			131,009
Stockholders' equity		257,383		244,560			36,992		(281,552	)		257,383
TOTAL	$	720,274	$	411,654		$	77,489	$	(340,555	)	$	868,862

	Successor December 31, 2010
(in thousands)	Parent		Guarantor Subsidiaries			Non-guarantor Subsidiaries		Eliminations			Total
ASSETS
Cash and cash equivalents	$	75,114	$	(2,000	)	$	5,352		-		$	78,466
Accounts and other receivables, net		25,382		104,985			39,886	$	(94,551	)		75,702
Inventories		18,791		26,521			10,506		-			55,818
Other current assets		3,546		7,035			7,937		-			18,518
Total current assets		122,833		136,541			63,681		(94,551	)		228,504
Property, plant, and equipment, net		45,909		121,990			73,153		-			241,052
Goodwill		97,127		67,253			13,192		-			177,572
Intangible assets, net		143,728		44,579			24,349		-			212,656
Investments in and advances to subsidiaries and affiliates		349,793		-			-		(349,793	)		-
Other non-current assets		10,977		7,379			1,647		(5,737	)		14,266
TOTAL	$	770,367	$	377,742		$	176,022	$	(450,081	)	$	874,050
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable	$	9,562	$	34,494		$	11,268		-		$	55,324
Accrued payroll and compensation		3,683		6,841			6,796		-			17,320
Accrued interest payable		12,682		-			-		-			12,682
Accrued and other liabilities		97,369		17,373			7,003	$	(94,551	)		27,194
Total current liabilities		123,296		58,708			25,067		(94,551	)		112,520
Long term debt		302,031		-			-		-			302,031
Deferred and non-current income taxes		26,664		-			19,693		(5,737	)		40,620
Other non-current liabilities		20,277		80,093			20,410		-			120,780
Stockholders' equity		298,099		238,941			110,852		(349,793	)		298,099
TOTAL	$	770,367	$	377,742		$	176,022	$	(450,081	)	$	874,050

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

	Successor Year ended December 31, 2011
(in thousands)	Parent			Guarantor Subsidiaries			Non-guarantor Subsidiaries			Eliminations			Total
Net sales	$	432,994		$	520,139		$	147,236		$	(164,274	)	$	936,095
Cost of goods sold		374,807			506,611			138,140			(164,274	)		855,284
Gross profit		58,187			13,528			9,096			-			80,811
Operating expenses		46,748			9,811			340			-			56,899
Income from operations		11,439			3,717			8,756			-			23,912
Other income (expense):
Interest expense, net		(33,475	)		(1,718	)		1,096			-			(34,097	)
Equity in earnings of subsidiaries		(27,734	)		-			-			27,734			-
Other income (expense), net		37,788			3,267			(37,459	)		-			3,596
Income (loss) before income taxes from continuing operations		(11,982	)		5,266			(27,607	)		27,734			(6,589	)
Income tax provision		5,049			-			2,712			-			7,761
Income (loss) from continuing operations		(17,031	)		5,266			(30,319	)		27,734			(14,350	)
Discontinued operations, net of tax		-			-			(2,681	)		-			(2,681	)
Net income (loss)	$	(17,031	)	$	5,266		$	(33,000	)	$	27,734		$	(17,031	)

	Successor Period from February 26 to December 31, 2010
(in thousands)	Parent			Guarantor Subsidiaries		Non-guarantor Subsidiaries			Eliminations			Total
Net sales	$	292,041		$	297,343	$	96,808		$	(103,885	)	$	582,307
Cost of goods sold		275,553			280,005		90,186			(103,885	)		541,859
Gross profit		16,488			17,338		6,622			-			40,448
Operating expenses		46,909			7,005		233			-			54,147
Income (loss) from operations		(30,421	)		10,333		6,389			-			(13,699	)
Other income expense:
Interest expense, net		(33,030	)		2,412		(2,832	)		-			(33,450	)
Equity in earnings of subsidiaries		21,581			-		-			(21,581	)		-
Other income (expense), net		(87,925	)		516		(1,133	)		-			(88,542	)
Income (loss) before income taxes from continuing operations		(129,795	)		13,261		2,424			(21,581	)		(135,691	)
Income tax provision (benefit)		(3,263	)		-		1,056			-			(2,207	)
Income (loss) from continuing operations		(126,532	)		13,261		1,368			(21,581	)		(133,484	)
Discontinued operations, net of tax		-			-		6,952			-			6,952
Net income (loss)	$	(126,532	)	$	13,261	$	8,320		$	(21,581	)	$	(126,532	)

	Predecessor Period from January 1 to February 26, 2010
(in thousands)	Parent			Guarantor Subsidiaries			Non-guarantor Subsidiaries			Eliminations			Total
Net sales	$	47,044		$	45,412		$	14,011		$	(14,820	)	$	91,647
Cost of goods sold		44,827			45,072			14,318			(14,820	)		89,397
Gross profit (loss)		2,217			340			(307	)		-			2,250
Operating expenses		5,327			1,121			31			-			6,479
Loss from operations		(3,110	)		(781	)		(338	)		-			(4,229	)
Other income (expense):
Interest expense, net		(6,804	)		515			(1,207	)		-			(7,496	)
Equity in earnings of subsidiaries		(1,096	)		-			-			1,096			-
Other income (expense), net		547			49			(30	)		-			566
Income (loss) before reorganization items and income taxes from continuing operations		(10,463	)		(217	)		(1,575	)		1,096			(11,159	)
Reorganization expense (income)		(59,334	)		-			23			-			(59,311	)
Income tax benefit		(1,931	)		-			-			-			(1,931	)
Income (loss) from continuing operations		50,802			(217	)		(1,598	)		1,096			50,083
Discontinued operations, net of tax		-			-			719			-			719
Net income (loss)	$	50,802		$	(217	)	$	(879	)	$	1,096		$	50,802

	Predecessor Year ended December 31, 2009
(in thousands)	Parent			Guarantor Subsidiaries			Non-guarantor Subsidiaries			Eliminations			Total
Net sales	$	271,005		$	254,183		$	90,009		$	(100,448	)	$	514,749
Cost of goods sold		262,748			273,249			86,284			(100,448	)		521,833
Gross profit (loss)		8,257			(19,066	)		3,725			-			(7,084	)
Operating expenses		29,330			6,468			565			-			36,363
Impairment of other intangibles		-			2,830			-			-			2,830
Prepetition fees		17,015			-			-			-			17,015
Income (loss) from operations		(38,088	)		(28,364	)		3,160			-			(63,292	)
Other income (expense):
Interest expense, net		(56,993	)		3,228			(5,988	)		-			(59,753	)
Loss on extinguishment of debt		(5,389	)		-			-			-			(5,389	)
Equity in earnings of subsidiaries		(22,968	)		-			-			22,968			-
Other income (expense), net		(1,471	)		252			8,107			-			6,888
Income (loss) before reorganization items and income taxes from continuing operations		(124,909	)		(24,884	)		5,279			22,968			(121,546	)
Reorganization expense (income)		14,379			-			-			-			14,379
Income tax provision		824			-			1,552			-			2,376
Income (loss) from continuing operations		(140,112	)		(24,884	)		3,727			22,968			(138,301	)
Discontinued operations, net of tax		-			-			(1,811	)		-			(1,811	)
Net income (loss)	$	(140,112	)	$	(24,884	)	$	1,916		$	22,968		$	(140,112	)

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

	Successor Year ended December 31, 2011
(in thousands)	Parent Company			Guarantor Subsidiaries			Non-guarantor Subsidiaries			Eliminations			Total
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$	(17,031	)	$	5,266		$	(33,000	)	$	27,734		$	(17,031	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation		10,717			21,162			7,039			-			38,918
Amortization – deferred financing costs		2,759			-			-			-			2,759
Amortization – other intangible assets		8,767			2,614			979			-			12,360
(Gain) loss on disposal of assets		(11,461	)		(922	)		12,827			-			444
Deferred income taxes		4,842			-			(548	)		-			4,294
Non-cash stock-based compensation		2,397			-			-			-			2,397
Equity in earnings of subsidiaries and affiliates		27,734			-			-			(27,734	)		-
Non-cash change in warrant liability		(3,971	)		-			-			-			(3,971	)
Change in other operating items		(35,793	)		16,894			(22,808	)		-			(41,707	)
Net cash provided by (used in) operating activities		(11,040	)		45,014			(35,511	)		-			(1,537	)

CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant, and equipment		(10,115	)		(45,784	)		(2,472	)		-			(58,371	)
Other		(22,381	)		-			40,738			-			18,357
Net cash provided by (used in) investing activities		(32,496	)		(45,784	)		38,266			-			(40,014	)

CASH FLOWS FROM FINANCING ACTIVITIES:
Increase in revolving credit advance		20,000			-			-			-			20,000
Net cash provided by financing activities		20,000			-			-			-			20,000

Increase (decrease) in cash and cash equivalents		(23,536	)		(770	)		2,755			-			(21,551	)
Cash and cash equivalents, beginning of period		75,114			(2,000	)		5,352			-			78,466
Cash and cash equivalents, end of period	$	51,578		$	(2,770	)	$	8,107		$	-		$	56,915

	Successor Period from February 26 to December 31, 2010
(in thousands)	Parent Company			Guarantor Subsidiaries			Non-guarantor Subsidiaries			Eliminations			Total
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$	(126,532	)	$	13,261		$	8,320		$	(21,581	)	$	(126,532	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation		7,026			19,539			8,738			-			35,303
Amortization – deferred financing costs		1,148			-			-			-			1,148
Amortization – other intangible assets		5,572			1,721			1,163			-			8,456
Loss on disposal of assets		16			36			158			-			210
Deferred income taxes		(2,929	)		-			4,228			-			1,299
Paid-in-kind interest		6,863			-			-			-			6,863
Non-cash stock-based compensation		1,101			-			-			-			1,101
Equity in earnings of subsidiaries and affiliates		(21,581	)		-			-			21,581			-
Non-cash change in market valuation - convertible notes		(75,574	)		-			-			-			(75,574	)
Non-cash change in warrant liability		(2,648	)		-			-			-			(2,648	)
Non-cash inducement expense		166,691			-			-			-			166,691
Change in other operating items		20,449			(21,527	)		(4,829	)		-			(5,907	)
Net cash provided by (used in) operating activities		(20,398	)		13,030			17,778			-			10,410

CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant, and equipment		(2,110	)		(11,889	)		(2,329	)		-			(16,328	)
Other		13,027			311			9,075			-			22,413
Net cash provided by (used in) investing activities		10,917			(11,578	)		6,746			-			6,085

CASH FLOWS FROM FINANCING ACTIVITIES:
Other		3,624			-			(22,000	)		-			(18,376	)
Net cash provided by (used in) financing activities		3,624			-			(22,000	)		-			(18,376	)

Increase (decrease) in cash and cash equivalents		(5,857	)		1,452			2,524			-			(1,881	)
Cash and cash equivalents, beginning of period		80,971			(3,452	)		2,828			-			80,347
Cash and cash equivalents, end of period	$	75,114		$	(2,000	)	$	5,352		$	-		$	78,466

	Predecessor Period from January 1 to February 26, 2010
(in thousands)	Parent Company			Guarantor Subsidiaries			Non-guarantor Subsidiaries			Eliminations			Total
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$	50,802		$	(217	)	$	(879	)	$	1,096		$	50,802
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation		1,205			4,164			1,342			-			6,711
Amortization – deferred financing costs		690			-			4			-			694
Amortization – other intangible assets		31			614			176			-			821
Reorganization items		(59,334	)		-			23			-			(59,311	)
Payments on reorganization items		(12,164	)		-			-			-			(12,164	)
Paid-in-kind interest		1,769			-			-			-			1,769
Loss (gain) on disposal of assets		2			-			1			-			3
Equity in earnings of subsidiaries and affiliates		1,096			-			-			(1,096	)		-
Deferred income taxes		(1,957	)		-			397			-			(1,560	)
Change in other operating items		(625	)		(5,356	)		(2,557	)		-			(8,538	)
Net cash used in operating activities		(18,485	)		(795	)		(1,493	)		-			(20,773	)

CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant, and equipment		(60	)		(1,338	)		(59	)		-			(1,457	)
Other		(600	)		45			-			-			(555	)
Net cash used in investing activities		(660	)		(1,293	)		(59	)		-			(2,012	)

CASH FLOWS FROM FINANCING ACTIVITIES:
Net proceeds from debt issuance		46,611			-			-			-			46,611
Net cash provided by financing activities		46,611			-			-			-			46,611

Increase (decrease) in cash and cash equivalents		27,466			(2,088	)		(1,552	)		-			23,826
Cash and cash equivalents, beginning of year		53,505			(1,364	)		4,380			-			56,521
Cash and cash equivalents, end of period	$	80,971		$	(3,452	)	$	2,828		$	-		$	80,347

	Predecessor Year ended December 31, 2009
(in thousands)	Parent Company			Guarantor Subsidiaries			Non-guarantor Subsidiaries			Eliminations			Total
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$	(140,112	)	$	(24,884	)	$	1,916		$	22,968		$	(140,112	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation		8,230			30,733			8,450			-			47,413
Amortization – deferred financing costs		4,526			-			31			-			4,557
Amortization – other intangible assets		187			3,684			1,051			-			4,922
Loss on extinguishment of debt		5,389			-			-			-			5,389
Change in warrant liability		(594	)		-			-			-			(594	)
Paid-in-kind interest		9,421			-			-			-			9,421
Loss (gain) on disposal of assets		(275	)		287			293			-			305
Loss on sale of marketable securities		1,100			-			-			-			1,100
Provision for deferred income taxes		255			-			609			-			864
Equity in earnings of subsidiaries and affiliates		22,968			-			-			(22,968	)		-
Non-cash stock-based compensation		333			-			-			-			333
Impairments of other intangibles		-			2,830			500			-			3,330
Reorganization items		14,379			-			-			-			14,379
Payments on reorganization items		(5,559	)		-			-			-			(5,559	)
Change in other operating items		44,362			(802	)		(28,620	)		-			14,940
Net cash provided by (used in) operating activities		(35,390	)		11,848			(15,770	)		-			(39,312	)

CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant, and equipment		(6,976	)		(11,841	)		(1,547	)		-			(20,364	)
Other		(14,789	)		280			-			-			(14,509	)
Net cash used in investing activities		(21,765	)		(11,561	)		(1,547	)		-			(34,873	)

CASH FLOWS FROM FINANCING ACTIVITIES:
Net change in revolving credit advance		4,315			-			(8,000	)		-			(3,685	)
Debtor in possession borrowing		21,467			-			-			-			21,467
Other		(10,752	)		-			-			-			(10,752	)
Net cash provided by (used in) financing activities		15,030			-			(8,000	)		-			7,030

Decrease in cash and cash equivalents		(42,125	)		287			(25,317	)		-			(67,155	)
Cash and cash equivalents, beginning of year		95,630			(1,651	)		29,697			-			123,676
Cash and cash equivalents, end of period	$	53,505		$	(1,364	)	$	4,380		$	-		$	56,521