Remy Worldwide Holdings’ pre-packaged plan of reorganisation has been confirmed by the US bankruptcy court, just 43 days after the plan and related petitions were filed.
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Upon emergence, expected in early December, Remy’s long-term debt will be reduced by $US360m, the company said in a statement on Wednesday.
“The recapitalisation 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,” said chief executive officer John Weber.
Remy also said that on the effective date of the plan it would enter into a $120m revolving credit facility to be provided by Barclays Capital. It added that the exit financing, which includes a term loan of $210m, would provide it with sufficient liquidity to continue to meet financial requirements and grow the business.
The sale of subsidiary operation Knopf has also been court-approved and should close on 4 December.
“Since signing the plan support agreement with our noteholders just six months ago, Remy has successfully recapitalised 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.
“In a matter of days Remy will emerge from this process a more competitive company with a strong balance sheet,” Weber added.
Remy International manufactures, remanufactures [reconditions] and distributes Delco Remy brand heavy-duty systems and Remy brand starters and alternators, locomotive products and hybrid power technology. It also offers a worldwide components core-exchange service for automobiles, light trucks, medium and heavy-duty trucks and other heavy-duty, off-road and industrial applications.
