After months of planning, Federal-Mogul Corporation announced that it has emerged from Chapter 11 bankruptcy. The Southfield, Mich.-based auto parts manufacturer made the announcement on Dec. 27, in accordance with the effective date of its approved plan of reorganization.
"This is an especially exciting time for Federal-Mogul. We begin 2008 with confidence in our future and we are well positioned with our global strategy for sustainable profitable growth," says José Maria Alapont, the company's president and chief executive officer. "We wish to thank our customers, employees, stakeholders and the communities in which we do business for their loyalty and support. We remain committed to deliver value to all of them."
Pursuant to the plan, Federal-Mogul has issued 49.9 million shares of its Class A common stock and 50.1 million shares of its Class B common stock. The shares of Class A common stock were issued to holders of its pre-bankruptcy notes and certain other unsecured claims. Federal-Mogul intends in the near term to have its Class A common stock listed. The shares of Class B common stock were issued to the Federal-Mogul Asbestos Personal Injury Trust. Under the plan, the company has issued 6.9 million warrants to purchase shares of its Class A common stock to holders of its pre-bankruptcy common stock, preferred stock and convertible junior subordinated debentures.
Federal-Mogul has entered into a $3.5 billion exit facility agreement, consisting of a $540 million revolving credit facility and a $3 billion term loan credit facility. The company intends to repay the Tranche A term loan and the PIK notes issued under the plan on Jan. 3, 2008, using funds borrowed under the term loan credit facility.
"We have continued during the restructuring process to grow our business globally and have strengthened our financial performance," Alapont adds. "The worldwide Federal-Mogul team is fully dedicated to exceed customer and market expectations by creating value through innovative technology, leading products and service excellence at competitive cost. We are pleased to emerge as a world-class, diversified global supplier."
For more information about Federal-Mogul Corporation, visit the company's Web site.