BIRMINGHAM, Ala. A federal judge has approved Citation Corp.s plan to recapitalize its debt, ruling just 25 days after the company filed the plan in the U.S. Bankruptcy Court for the Northern District of Alabama.

Thursdays approval of the plan by U.S. Bankruptcy Judge Tamara O. Mitchell gives Citation a strong balance sheet and the flexibility needed to meet our corporate goals, said Ed Buker, Citations President and CEO. The speed with which we completed our recapitalization reflects the support we have from our investors and lenders and their belief in our strategic direction.

The recapitalization converted $160 million of the companys approximately $190-million term debt to common equity. The remaining $30 million of term debt was converted into pay-in-kind or PIK debt, which will require no payments until 2013. Citations existing preferred and common equity holders received warrants in the company and the companys asset-based revolving line of credit continues under existing terms.

During the past two years, Citation has significantly reduced internal costs, won substantial new business across all segments and divested and closed non-core operations to position the company for the future.

Buker described the recapitalization plan as a key element of the companys long-term business strategy.

Citation is a privately held corporation headquartered in Birmingham, Ala. Through its subsidiaries, the company designs, develops and manufactures high-quality cast and machined components for market segments including the automotive, heavy truck, construction, agricultural and commercial industries. Citation employs 2,900 in Alabama, Texas, Indiana, Michigan, North Carolina and Wisconsin.