Real Industry emerges from Chapter 11 bankruptcy case as Elah Holdings

By Caroline Salls

Pittsburgh, May 9 – Real Industry, Inc. emerged from Chapter 11 bankruptcy when its plan of reorganization took effect on Wednesday, according to a company news release.

In connection with the plan, the company said it adopted new organizational documents and changed its name to Elah Holdings, Inc.

Under the plan, Real Industry’s common stock has been recapitalized, with 2.5 million shares of capital stock authorized.

210/RELY Partners, LP, Goldman Sachs BDC, Inc., Goldman Sachs Private Middle Market Credit LLC and Goldman Sachs Middle Market Lending Corp. acquired newly issued common stock for a total purchase price of $17.5 million, representing 49% of the company, with a portion of the proceeds used to repay Real Industry’s debtor-in-possession financing in full.

The holder of the company’s series B preferred stock received $2 million in cash consideration plus newly issued common stock, totaling 31% of the company.

Each holder of Real Industry common stock is receiving one share of common stock for each of its 200 pre-effective-date shares. In total, the common stockholders are collectively receiving 20% of the new common stock.

The company’s new board of directors includes Robert Alpert, C. Clark Webb, Brian Laibow, Douglas Tabor and Randy Brown.

According to the release, Elah will seek to generate long term shareholder value through the continuation of its strategy of seeking profitable acquisitions and generate increased free cash flow from the utilization of its tax assets.

The company said its Real Alloy Holding, Inc. subsidiary expects to emerge from its Chapter 11 proceedings in the second quarter. At that time, Elah will abandon its equity interests in this subsidiary.

“We are pleased that the company has emerged from these proceedings, and we look forward to working with the company’s management team to create long-term shareholder value,” new chairman Webb said in the release.

The plan was confirmed on May 2 by the U.S. Bankruptcy Court for the District of Delaware.

Sherman Oaks, Calif.-based Real Industry filed bankruptcy on Nov. 17, 2017 under Chapter 11 case number 17-12464.

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