UCI International plan approved by court; year-end emergence expected

By Caroline Salls

Pittsburgh, Dec. 6 – UCI International, LLC’s plan of reorganization was confirmed Tuesday by the U.S. Bankruptcy Court for the District of Delaware, according to a company news release.

UCI said the confirmation order marks a key milestone in the six-month reorganization process and positions the company for emergence from bankruptcy at year-end.

“UCI is pleased with the outcome of the restructuring process which significantly de-levers the company and positions the business for future growth,” chief restructuring officer Brian Whittman said in the release.

According to the release, UCI’s restructuring will reduce the company’s funded debt by about $380 million.

UCI said it expects to close on a $120 million asset-based lending facility provided by Wells Fargo Bank, NA, Citizens Bank, NA and BMO Harris Bank NA at emergence to fund plan distributions and ongoing operations.

As previously reported, the plan is supported by UCI’s official committee of unsecured creditors and an informal committee of senior noteholders.

Holders of the company’s senior unsecured notes will become the controlling equity holders of reorganized UCI under the plan.

The plan, consistent with a stipulation between the company, the unsecured creditors committee and the lenders and agent under UCI’s pre-bankruptcy ABL credit facility, provides for the payment in full of pre-bankruptcy ABL credit facility claims.

All existing equity interests will be extinguished and cancelled.

Pre-bankruptcy ABL credit facility claims will be paid in full in cash.

Holders of senior notes claims, holders of general unsecured claims not electing cash and rights offering participants will receive 91% of the new common stock of reorganized UCI, with 5% earmarked for management incentive plan payments and 4% for backstop fees.

The plan also provides for the reinstatement or payment in full in cash of claims entitled to administrative expense or priority status.

Alvarez & Marsal, Moelis & Co. LLC, and Sidley Austin LLP advised the company on its restructuring.

UCI is an Evansville, Ind.-based supplier to the light- and heavy-duty vehicle aftermarket for replacement parts, including filtration, fuel delivery systems, vehicle electronics and cooling systems products. The company filed bankruptcy on June 2, 2016 under Chapter 11 case number 16-11354.

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