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Date: Tuesday, June 16, 2009 5:49:10 PM
In reply to: None Post # of 51 [Send a link via email]
Item 1.01 Entry into a Material Definitive Agreement
On June 16, 2009, we announced we reached an agreement with members of our secured lenders to significantly reduce our debt, establish a new revolving credit facility and substantially lower interest expense upon completion of a restructuring plan. We have voluntarily initiated reorganization proceedings under Chapter 11 of the U.S. Bankruptcy Code in Delaware to implement this pre-negotiated restructuring plan in an efficient and timely manner.
We have received commitments for $80 million in debtor-in-possession (DIP) financing from certain of our existing lenders. Of this amount, $40 million will be immediately available upon interim approval of the Court. This represents an increase of $20 million from the existing $20 million revolver. Upon final approval, we will have access to the full $80 million. We expect the new financing to provide ample liquidity to meet our ongoing obligations to employees, customers and suppliers.
Under the proposed plan, our existing secured lenders will convert their interests to equity in the newly reorganized company and will receive interests in $135 million of term notes. Unsecured creditors will receive a cash distribution and the right to receive future payments based on our operating performance. The existing common shares held by shareholders will be extinguished and these shareholders will not receive any distributions.
We anticipate completing our restructuring in three to four months.
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From post #17 ...
<We anticipate completing our restructuring in three to four months>
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