Key Plastics has said that it has completed its pre-packaged bankruptcy reorganisation, with effect from 13 February.
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The reorganisation resulted in the elimination of US$115m in secured debt and receipt of a $20m new equity investment, with Wayzata Investment Partners becoming the company’s controlling shareholder. Additionally, the company entered into a new, undrawn, $25m credit facility.
Key Plastics is one of the leading manufacturers of engineered plastic components for the global automotive industry.
Ralph Ralston, president & COO of the company’s North American operations, said: “We are very pleased to announce the completion of our reorganisation. We have completed the transition exactly on schedule and without disruption to our customers and suppliers, just as we had promised. Once again, we would like to thank our customers, suppliers, employees, new and old shareholders for their cooperation and effort during this transition.
“Our goal was to position ourselves to be one of the beneficiaries of our customers’ supplier consolidation strategies as the supply base contracts at a greater pace in 2009. We have achieved that goal, with Key Plastics now being largely debt free and maintaining very high levels of quality and delivery. Very few will be as well-positioned to assist our customers during the inevitable rationalisation of the supply base this year.”
