Real Alloy businesses emerge from bankruptcy following sale closing

By Caroline Salls

Pittsburgh, May 31 – The businesses of Real Alloy Holding, Inc. and its subsidiaries emerged from bankruptcy on Thursday following the closing of the purchase of the company’s assets by a group of former noteholders led by funds and accounts managed by DDJ Capital Management, LLC, according to a news release.

The noteholders submitted the stalking horse bid for Real Alloy for total consideration valued at $364 million plus the assumption of significant liabilities.

Under the terms of the executed asset purchase agreement, the purchase price is comprised of a cash payment, the assumption of liabilities and a $184 million credit bid.

The company said the purchase included operations in the United States, Germany, Norway, the United Kingdom, Mexico and Canada and the company’s joint venture in Goodyear, Ariz.

The business will continue under the Real Alloy name and will maintain its headquarters in Beachwood, Ohio, the release said.

Following the asset purchase, the company said its debt has been reduced by roughly $200 million, and the transaction immediately provided Real Alloy with a strong liquidity position.

Going forward, Real Alloy will be a privately held company.

“We are very excited to be a company with a strong financial structure and supportive ownership that looks to further establish Real Alloy as the industry leader in the regions we serve,” president Terry Hogan said in the release.

As previously reported, the Real Industry, Inc. debtor emerged from Chapter 11 bankruptcy when its plan of reorganization took effect on May 9. In connection with the plan, Real Industry adopted new organizational documents and changed its name to Elah Holdings, Inc.

Under the plan, Real Industry’s common stock was 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.

Elah was expected to abandon its equity interests in Real Alloy Holding upon the latter’s emergence from Chapter 11.

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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