ANDERSON, Ind., July 31 /PRNewswire-FirstCall/ -- Remy International,
Inc. announced today that it has reached agreements with General Motors
Corporation (GM) with respect to the extension and enhancement of the
Company's existing supply relationship with GM. The new GM arrangement is
an important development in the furtherance of the Company's financial
restructuring. While certain aspects of the arrangement will be implemented
immediately, the agreement will become fully effective upon the
consummation of the Company's financial restructuring.
"We are extremely pleased to have reached agreement with GM on a
comprehensive restructuring of our commercial arrangement. We look forward
to a long and mutually beneficial relationship with GM," said John Weber,
Remy's chief executive officer.
The Company also 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, subject to certain closing
conditions and documentation.
As a result of finalizing these two critical aspects of its financial
restructuring, the Company will commence a solicitation of votes on its
prepackaged chapter 11 by mid-August. As previously announced, the terms of
its consensual financial restructuring with its noteholders contemplates
that all trade creditors, employees and suppliers will continue to be paid
in the ordinary course of business.
The terms of the financing commitment will be more fully described in
the Solicitation and Disclosure Statement, which will be available on the
Company's website once the solicitation period has commenced.
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 only will be made pursuant to and in accordance with the solicitation
and disclosure statement, if and when distributed by the Company to certain
of its noteholders and applicable law.
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 satisfaction of
the conditions precedent to the previously announced plan aupport agreement
including but not limited to 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 and to
make required interest payments, the continuation of forbearance agreements
with respect to certain defaults and 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, 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:
Brenda Adrian, +1-212-573-6100, or Maya
Pogoda, +1-310-788-2850, both of Sitrick And Company, for Remy
International, Inc.
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