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Real Industry Completes Reorganization Under Chapter 11 (5/09/18)

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Enterprising Investor Member Level  Wednesday, 05/09/18 11:51:33 PM
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Real Industry Completes Reorganization Under Chapter 11 (5/09/18)

Changes Name to Elah Holdings, Inc.

Well positioned to execute acquisition business strategy with strong cash balance and zero debt

EACHWOOD, Ohio--(BUSINESS WIRE)--Real Industry, Inc. (the “Company”) today announced its emergence from bankruptcy proceedings. The Company has met all requirements for the completion of its plan of reorganization under Chapter 11 of the Bankruptcy Code, as amended and approved by the United States Bankruptcy Court for the District of Delaware (the “Plan”). The effective date of the Plan is May 9, 2018.

In connection with the Plan, the Company adopted new organizational documents, and changed its name to Elah Holdings, Inc.

Key features of the Plan include:

- The common stock of the Company has been recapitalized, with 2.5 million shares of capital stock authorized

- 210/RELY Partners, LP (“210 Partners”), Goldman Sachs BDC, Inc., Goldman Sachs Private Middle Market Credit LLC and Goldman Sachs Middle Market Lending Corp. acquired newly issued common stock for an aggregate purchase price of $17.5 million, totaling approximately 49% of the Company, with a portion of the proceeds used to repay the Company’s debtor-in-possession (DIP) financing in full

- The holder of the Company’s Series B Preferred Stock received $2.0 million in cash consideration plus newly issued common stock, totaling 31% of the Company, in exchange for the cancellation of its Series B Preferred Stock

- Each holder of Real Industry common stock is receiving one share of common stock for each of its 200 shares before the effective date, and in the aggregate, the common stockholders are collectively receiving 20% of the new common stock

- The new Board of Directors of the Company includes Robert Alpert, C. Clark Webb, Brian Laibow, Douglas Tabor and Randy Brown

The Company will seek to generate long term shareholder value through the continuation of its strategy of seeking profitable acquisitions and generate increased free cash flow from the utilization of its tax assets.

The Company’s subsidiary, Real Alloy Holding, Inc., expects to emerge from its Chapter 11 proceedings in the second quarter of 2018 at which time the Company will abandon its equity interests in this subsidiary.

Management Comments

C. Clark Webb, the Company’s new Chairman of the Board, stated, “We are pleased that the Company has emerged from these proceedings, and we look forward to working with the Company’s management team to create long-term shareholder value.”

Additional Information on the Chapter 11 Proceedings

Court filings and other information related to the court-supervised proceedings are available at a website administered by the Company’s claims agent, Prime Clerk, at https://cases.primeclerk.com/realindustry.

https://www.businesswire.com/news/home/20180509006484/en/Real-Industry-Completes-Reorganization-Chapter-11

"Someone said it takes 30 years to be an instant success" - Gabriel Barbier-Mueller, CEO of Harwood International
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