Lumileds Announces Agreement with Requisite Lenders on the Terms of a Comprehensive Financial Restructuring to...
Transaction Will Result in Strong Liquidity Position and Significant De-leveraging Through Debt Reduction of $1.3 Billion
To Implement Restructuring Plan, Lumileds Commences Voluntary Prepackaged Chapter 11 Proceedings, Limited to United States and Netherlands Operations
None of Lumileds' Operations Outside of the United States and the Netherlands Are Included in the Chapter 11 Process
Receives Commitments for $275 Million in Debtor-in-Possession Financing Which Will Roll into 5-Year Exit Facility
Global Operations Continue in Normal Course Without Any Interruption or Impact Expected to Customers, Vendors, Suppliers, and Employees
Lumileds Holding B.V. (Lumileds or the Company), a global leader in innovative lighting solutions, announced today that it has entered into a restructuring support agreement (the RSA or the Agreement) with its lenders holding a significant majority of the loans outstanding under its prepetition first lien debt facility on the terms of a comprehensive financial restructuring that would significantly de-leverage and strengthen its balance sheet by over $1.3 billion, accelerate Lumileds' growth, and enable further investment in innovation to pursue additional strategic opportunities through the injection of up to $275 million of liquidity.
To efficiently implement the de-leveraging, a narrowly focused prepackaged Chapter 11 plan (the Plan) involving only Lumileds' U.S. and Dutch entities has commenced in the U.S. Bankruptcy Court for the Southern District of New York (the Court). Lumileds' European, Asian, and other foreign subsidiaries and affiliates are not included in the filing and are unaffected by the Chapter 11 process. The Company has obtained the necessary support from its lenders to confirm the Plan prior to commencing its proceedings and expects to meet the requirements to confirm the Plan and emerge from Chapter 11 within approximately sixty days.
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