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Holley Performance emerges from bankruptcy as plan takes effect
By Caroline Salls
Pittsburgh, June 23 - Holley Performance Products Inc. emerged from Chapter 11 bankruptcy when its plan of reorganization took effect on Tuesday, according to a filing with the U.S. Bankruptcy Court for the District of Delaware.
The plan was confirmed on June 7.
According to court documents, Holley obtained a commitment for a $10 million first-lien exit revolving facility due April 30, 2013 from agent Wells Fargo Capital Finance Inc. and a second-lien exit facility due June 2015 from agent Wilmington Trust FSB.
The amount of the second-lien facility was not disclosed in the plan supplement.
Interest on the first-lien term loan will be Libor plus 350 basis points. Interest on the second-lien facility will be 12.5%.
As previously reported, creditor treatment under the plan includes:
• Holders of secured credit agreement claims will be paid in full in cash;
• Holders of secured note claims will receive their share of common stock in the reorganized company or the expected value of the shares in cash for a 61% recovery;
• Holders of other secured claims will have their claims fully reinstated;
• Holders of other priority claims will be paid in full in cash;
• Holders of general unsecured claims, as well as holders of subordinated securities claims and holders of equity interests will receive no recovery; and
• Equity interests in Holley's subsidiaries will remain effective and outstanding.
Holley, a Bowling Green, Ky.-based maker of high-performance carburetors and other automotive engine equipment, filed for bankruptcy on Sept. 28, 2009. Its Chapter 11 case number is 09-13333.
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