Holley Performance Reorganizes and Emerges From Chapter 11 Bankruptcy
Holley Performance Products Inc. has announced that it has significantly improved its capital structure and liquidity through a successful voluntary bankruptcy reorganization that became effective on June 22, 2010.
As a result of the reorganization, Holley reduced its debt by over $59 million and obtained new credit arrangements including a revolving credit facility that provides the company with substantial flexibility to pursue its growth initiatives.
According to the company’s Chief Executive Officer, Tom Tomlinson, “Holley has emerged with an extraordinarily strong balance sheet which provides us with the flexibility to reinvest in our business and positions us well for continued growth. We have accomplished a true restructuring in a cooperative, efficient and timely manner and we are deeply grateful for the support and loyalty we received from our customers, dedicated employees, suppliers, lenders, and shareholders. We have an exciting array of new products slated for introduction in the immediate future and we are dedicated to the execution of our mission to provide the most highly sought after products in the high performance automotive aftermarket. With our new balance sheet, we now have the financial strength to create value through long-term sustainable organic growth and appropriate strategic acquisitions while continuing to enhance the reputation and reach of our core stable of brands.”
Holley’s reorganization converted principal and interest associated with its former second lien notes into equity and established new credit facilities with its existing senior lenders. Also during the reorganization, Holley successfully completed the sale of its diesel OEM business. Tomlinson said, “The sale of our diesel OEM business yielded excellent value that we are reinvesting in our performance business. Our team is excited that we are now able to focus 100 percent of our energy on our very successful high performance automotive aftermarket business.”
David G. Elkins, Chairman of Holley’s Board of Directors said, “We initiated Holley’s voluntary bankruptcy case in September 2009 after carefully evaluating the effects of the economic recession and related collapse of the credit markets. Our goal was to significantly reduce Holley’s corporate debt and overall leverage and thereby establish a sustainable, long-term capital structure that would allow the company to carry out its growth and product expansion plans. We are extremely pleased with the outcome, having reduced debt by over $59 million. Thanks to the efforts of our senior management team and other employees and to the cooperation we received from our stakeholders, suppliers and customers, Holley has emerged from this process as a financially strong company that is well-positioned for future growth and success.”
More information about Holley and its products may be found at www.holley.com.