ANDERSON, Ind., April 2 /PRNewswire/ -- Remy International, Inc.
announced today that it has notified the Securities and Exchange Commission
(the "SEC") that it is not obligated to file reports under the Exchange
Act. As a result, Remy will no longer be required under the Exchange Act to
file periodic reports and certain forms with the SEC, and will not file a
Form 10-K for its fiscal year ended December 31, 2006. The Company
anticipates that its 2006 audited financial statements will be completed no
later than April 30, 2007, and will be available on the Company's website.
"Discontinuing the SEC reporting will provide Remy with additional time
and resources to allocate to the two key objectives required to strengthen
our company - successfully completing a recapitalization effort and
renegotiating certain key commercial agreements," said John Weber,
President and Chief Executive Officer. "Achieving these objectives will
improve both our balance sheet and margins, creating a platform for a
sustainable and profitable business."
Remy also announced today that it is in discussions with
representatives of a majority of its outstanding Notes regarding a
recapitalization plan to delever the Company's balance sheet. While there
can be no assurance that Remy will be successful in obtaining an agreement
with its noteholders with respect to a recapitalization plan, the Company
believes its current liquidity position will permit it to continue to
finance its operations in the ordinary course of its business.
The Company, with the support of its revolving credit facility lenders,
continues to have access to its revolving credit facility. As of March 30,
2007, the Company's liquidity position was approximately $94 million,
consisting of unrestricted cash and cash equivalents of $19 million and
permitted availability under its revolving credit facility of approximately
$75 million. Additionally, $50 million of cash proceeds from the previously
announced sale of assets of the diesel engine remanufacturing business
remains in an escrow account for the benefit of the Company's senior
secured lenders.
About Remy International, Inc.:
Remy International, Inc., headquartered in Anderson, Indiana, is a
leading manufacturer, remanufacturer and distributor of Delco Remy brand
heavy-duty starters and alternators 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. Remy was formed in 1994 as a partial
divestiture by General Motors Corporation of the former Delco Remy
Division, which traces its roots to Remy Electric, founded in 1896.
Caution Regarding Forward-Looking Statements:
This press announcement contains statements relating to future results
of the Company that are "forward-looking statements" as defined in the
Private Securities Litigation Reform Act of 1995 (the "Act") or by the
Securities and Exchange Commission ("SEC") in its rules, regulations and
releases. The Company desires to take advantage of the "safe harbor"
provisions in the Act for forward-looking statements made in this press
announcement. 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 uncertainty of negotiations with its Noteholders and 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 pendency of negotiations with
Noteholders, ability to make required interest payments, the possibility
that the Company may need to commence a chapter 11 proceeding, 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, the results of renegotiating
certain key commercial 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 detailed from time to time 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.
Remy International Website: http://www.remyinc.com
SOURCE Remy International, Inc.
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Related links:
http://www.remyinc.com
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CONTACT:
Leah Campbell, Corporate Communications,
+1-765-621-3797, Campbell.leah@remyinc.com
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