In just a matter of days, Remy Worldwide Holdings, Inc. will emerge from Chapter 11 bankruptcy with its long-term debt reduced by $360 million. The company recently announced that its pre-packaged plan of reorganization has been confirmed by the U.S. Bankruptcy Court just 43 days after its plan and related petitions were filed. Remy manufactures, remanufactures and distributes Delco Remy brand heavy-duty systems and Remy brand starters and alternators, locomotive products and hybrid power technology.
"The recapitalization would not have been such a success in such a short period of time without the loyalty of our customers, the professionalism and dedication of our employees, and the commitment and support of our creditor groups," says John Weber, the company's chief executive officer.
Remy also announced that on the plan's effective date, it will enter into a $120 million revolving credit facility to be provided by Barclays Capital. The company says that the exit financing, which includes a term loan of $210 million, will provide it with sufficient liquidity to continue to meet its financial requirements and grow its business in the coming years. In addition, the sale of subsidiary operation Knopf was approved and is expected to close on Dec. 4.
"Since signing the Plan Support Agreement with our noteholders just six months ago, Remy has successfully recapitalized the company's financial position, strengthened its business through a comprehensive restructuring of its commercial arrangement with General Motors, and built a foundation from which we can grow. We will emerge from this process a more competitive company with a strong balance sheet," Weber adds.
The company filed its voluntary pre-packaged chapter 11 petitions and plan of reorganization in the U.S. Bankruptcy Court for the District of Delaware in Wilmington.
For more information about Remy Worldwide Holdings, Inc., visit the company's Web site.