Holders of Approximately 80% of the Notes Already Agreed to the Terms of
the Plan
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 http://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 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, 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.
SOURCE Remy Worldwide Holdings Inc.
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Related links:
http://www.remyinc.com/
http://www.prnewswire.com/comp/111635.html /
CONTACT:
Anita-Marie Laurie of Sitrick And Company,
+1-310-788-2850, for Remy Worldwide Holdings Inc.
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