Noteholders Enter Into Forbearance Agreements
ANDERSON, Ind., April 16 /PRNewswire/-- Remy International, Inc. today
announced that it has entered into forbearance agreements with holders of
almost 90% of its 9 3/8 % Senior Subordinated Notes due in 2012, its 8 5/8
% Senior Notes due December 15, 2007 and its 11% Senior Subordinated Notes
due in 2009. Having received such agreements and in light of ongoing
discussions with its Noteholders, the Company will not make the April 15,
2007 interest payment on its 9 3/8 % Senior Subordinated Notes.
"We are very encouraged by the productive discussions we have had
regarding a comprehensive recapitalization of our financial structure. I am
pleased that our progress is reflected in the significantly high percentage
of the holders of the senior subordinated notes and senior notes that have
agreed to the forbearance," said John Weber, President and Chief Executive
Officer.
The Company made the April 15, 2007 interest payment of $2.9 million on
its Second-Priority Senior Secured Floating Rate Notes due in 2009.
The Company, with the support of its revolving credit facility lenders,
continues to have access to its revolving credit facility. As of April 13,
2007, the Company's liquidity position was approximately $73 million,
consisting of unrestricted cash and cash equivalents of $25 million and
permitted availability under its revolving credit facility of approximately
$48 million. The Company's current liquidity reflects typical intra-month
fluctuation resulting from normal payment and collection patterns.
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 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" 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
or get forbearance agreements with respect to such 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 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.
SOURCE Remy International, Inc.
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Related links:
http://www.remyinc.com
http://www.prnewswire.com/comp/111635.html/
CONTACT:
Leah Campbell, Corporate Communications, of
Remy International, Inc., +1-765-621-3797,
Campbell.leah@remyinc.com
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