The terms of the Agreement provide for a comprehensive restructuring of the Company's balance sheet (the "Prearranged Plan") to be implemented through the commencement of Chapter 11 cases. The Prearranged Plan, if implemented, will result in the elimination of approximately
During the Chapter 11 proceedings, the Company will continue to operate its business in the normal course without disruption to its vendors, customers, or employees, and will have sufficient liquidity to meet its financial obligations during the restructuring process. Through certain motions filed concurrent with the Chapter 11 cases (the "First Day Motions"),
In addition, the Company has received commitments from its various pre-petition lenders for
"We are very pleased to have reached this agreement with our various lenders," said Mr.
The Prearranged Plan, First Day Motions, and DIP/Exit Facilities are subject to court approval and, as such, final terms of any restructuring transaction may differ. If approved, they provide for the following:
- Payment of substantially all go-forward trade claims in the ordinary course
- Cancellation of current equity
- Conversion of
$450 millionof existing pre-petition debt into equity of the reorganized company $40 millionrights offering for New Secured Convertible Notes subject to certain typical and customary terms
The Company has set up a toll-free hotline to answer questions regarding this transaction. The hotline can be accessed by calling (866) 554-5810. Additional information regarding
Lazard is acting as financial advisor,
This press release does not constitute an offer to sell or purchase any securities, which would be made only pursuant to definitive documents and an applicable exemption from the Securities Act of 1933, as amended.
Some of the information in this news release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements give our current expectations, and contain projections of results of operations or of financial condition, or forecasts of future events. Words such as "may," "should," "assume," "forecast," "position," "predict," "strategy," "expect," "intend," "hope," "plan," "estimate," "anticipate," "could," "believe," "project," "budget," "potential," "likely," or "continue," and similar expressions are used to identify forward-looking statements. They can be affected by assumptions used or by known or unknown risks or uncertainties. Consequently, no forward-looking statements can be guaranteed. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements in
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Caldwell Bailey, Manager, Investor Relations, Marc Silverberg, ICR, email@example.com, (713) 980-6270