ANDERSON, Ind., Aug. 31 /PRNewswire/ -- Remy Worldwide Holdings Inc. announced today that it commenced a solicitation of votes for a prepackaged plan of reorganization from holders of Remy International Inc.'s 8-5/8% Senior Notes, 9-3/8% Senior Subordinated Notes, and 11% Senior Subordinated Notes. Votes on the prepackaged plan of reorganization must be received by Financial Balloting Group, the Company's voting agent, by October 1, 2007, unless the deadline is extended. The record date for voting has been set for August 29, 2007. Solicitation materials will be mailed to creditors of record on August 31, 2007. Noteholders seeking additional information about the balloting process may contact Jane Sullivan, Financial Balloting Group at (646) 282-1800.
"As the next step in our transformation process, the Company is pleased to announce the commencement for the solicitation of votes on its prepackaged plan of reorganization," said John Weber, Remy's Chief Executive Officer. "During this time the Company will continue to provide customers with quality products and on-time delivery."
He further added that throughout the solicitation process and beyond, trade creditors, suppliers and employees will continue to receive amounts owed to them in the ordinary course of business. In addition, the prepackaged plan of reorganization provides that the claims of trade creditors, suppliers and employees will be paid in full.
As previously disclosed, on June 15, 2007 the Company entered into a plan support agreement with holders of approximately 83% of its 8-5/8% Senior Notes, 84% of its 9-3/8% Senior Subordinated Notes, and 75% of its 11% Senior Subordinated Notes on the terms of a consensual financial restructuring that would reduce the Company's debt obligations by approximately $360 million. The Company and the consenting noteholders have agreed to consummate the restructuring through a prepackaged plan of reorganization. In addition, the consenting noteholders have agreed, subject to certain conditions, to backstop a rights offering of new preferred stock to be issued under the prepackaged plan of reorganization that will provide approximately $85 million of new capital to fund the prepackaged plan of reorganization and the Company's post- emergence operations. Assuming the Company receives the required acceptances, the Company intends to commence a prepackaged chapter 11 case at the conclusion of the solicitation period.
The Company also previously announced that it has obtained a binding commitment from Barclays Capital, the investment banking division of Barclays Bank PLC, to provide debtor-in-possession (DIP) financing of up to $225 million and $330 million of long-term exit financing. The terms of the commitment are more fully described in the Solicitation and Disclosure Statement.
This press release is for informational purposes only and is not a solicitation to accept or reject the proposed prepackaged plan of reorganization referred to herein or an offer to sell or a solicitation of an offer to buy any securities of the Company. Any solicitation or offer to sell will be made pursuant to and in accordance with the solicitation and disclosure statement distributed to holders of the Company's Senior Notes and Senior Subordinated Notes and applicable law.
A form of the Disclosure Statement and Plan of Reorganization which provides a substantial description of the reorganization may be accessed through www.remyinc.com.
About Remy
Remy International, headquartered in Anderson, Indiana, is a leading manufacturer, remanufacturer and distributor of Delco Remy brand heavy-duty systems and Remy brand starters and alternators, locomotive products and hybrid power technology. The Company also provides a worldwide components core-exchange service for automobiles, light trucks, medium and heavy-duty trucks and other heavy-duty, off-road and industrial applications.
Caution Regarding Forward-Looking Statements:
This press announcement contains statements relating to future results of the Company that are forward-looking statements. Any statements set forth in this press announcement with regard to its expectations as to financial results and other aspects of its business may constitute forward-looking statements. These statements relate to the Company's future plans, objectives, expectations and intentions and may be identified by words like "believe," "expect," "may," "will," "should," "seek," or "anticipate," and similar expressions. The Company cautions readers that any such forward-looking statements are based on assumptions that the Company believes are reasonable, but are subject to a wide range of risks including, but not limited to, risks associated with the confirmation of the prepackaged plan of reorganization, with the satisfaction of the conditions precedent to the plan support agreement, including, but not limited to, as a result of the occurrence of a termination event thereunder, the satisfaction of conditions precedent to funding occurring under both DIP and exit financing loan commitments and the occurrence of a termination event thereunder, the effect of a default under the indentures governing the Notes, future financial results and liquidity including the Company's continued ability to finance its operations in the normal course during the solicitation of votes on the Company's prepackaged plan, the continuation of forbearance agreements with respect to certain defaultsand payments and the potential necessity for additional forbearance agreements, the possibility that the Company may need to commence a chapter 11 proceeding other than in accordance with the proposed prepackaged plan, fluctuation of the borrowing base and other limitations that may affect the Company's ability to borrow under its revolving credit facilities or otherwise, the Company's relationship with and payment terms provided by its trade creditors, additional financing requirements, compliance with renegotiated key supplier agreements, dispositions, acquisitions and integration costs, development of new products and services, the effect of competitive products or pricing, the effect of commodity and raw material prices, the impact of supply chain cost management initiatives, restructuring risks, enterprise resource planning implementation risks, customs duty claims, litigation uncertainties and warranty claims, conditions in the automotive industry, foreign currency fluctuations, costs related to re-sourcing and outsourcing products, the effect of economic conditions and other uncertainties previously detailed in the Company's filings with the SEC. Due to these uncertainties, the Company cannot assure readers that any forward- looking statements will prove to have been correct. Remy International is under no obligation to (and expressly disclaims any such obligation to) update or alter any forward-looking statements whether as a result of new information, future events or otherwise.