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Reptron's reorganization plan gets bankruptcy court confirmation
By Jeff Pines
Washington, Jan. 16 - Reptron Electronics, Inc.'s second amended reorganization plan was confirmed by the U.S. Bankruptcy Court for the Southern District of Florida, West Palm Beach division, the company said.
Holders of the Tampa, Fla.-based electronics manufacturing services company's $30 million of 6¾% convertible notes due August 2004 will receive $30 million of new notes. The new notes will be 5-year securities due 2009, paying 7% in the first two years and 8% for the remaining three years. The existing notes and any unpaid interest will be cancelled.
Unsecured creditors including holders of the old convertibles will receive 95% of the common stock of the reorganized company. The remaining 5% will go to existing shareholders, Reptron said.
The company expects to emerge from Chapter 11 on Jan. 26.
"The restructuring of our convertible notes is a key component in our strategic plan, which we believe positions the Company to take advantage of future growth opportunities," said Paul J. Plante, Reptron's president and chief operating officer in a press release. "Once the restructuring is completed, Reptron will have reduced its debt load by over $70 million over the past 12 months."
Congress Financial, the company's pre-petition lender, will provide Reptron with exit financing.
It will have a $25 million revolver, including a $4 million letter of credit facility. The interest rate will depend upon which index the company selects, said Tom Lehman, an attorney with Reptron's bankruptcy counsel Tew Cardenas in Miami. There was no closing fee.
CIT Group, Inc. was the debtor-in-possession facility lender.
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