Generation Brands, a provider of light fixtures and ceiling fans for the building construction and home improvement industries–and some of its subsidiaries–have filed voluntary petitions to implement an agreed restructuring of its balance sheet under Chapter 11 of the U.S. Bankruptcy Code. According to the company, its creditors, other than the Company’s lenders and noteholders, will not be impaired by the plan. The company expects to finish the process and emerge from Chapter 11 by the end of January.
“With our lenders and noteholders standing firmly behind us, we expect our stay in Chapter 11 to be short and relatively painless,” said President and Chief Executive Officer T. Tracy Bilbrough.
Under the terms of the proposed restructuring plan, the company will eliminate more than $150 million in debt. Additionally, the company said it will receive a new $20 million equity investment from its principal shareholder, Quad-C Management, Inc., upon emergence from Chapter 11. When Generation Brands emerges from the Chapter 11 restructuring, it expects to have more than $30 million in liquidity and no debt maturities until 2014.
Learn more about Generation Brands’ restructuring here.
