Generation Brands announced on Jan. 15 that the U.S. Bankruptcy Court has confirmed the company’s pre-packaged Chapter 11 plan of reorganization.
The court’s approval of the plan, which had received the strong support of the company’s lenders and stockholders, clears the way for the company to emerge from bankruptcy by February, less than two months after its Dec. 4 filing.
The plan will improve the company’s financial flexibility by eliminating more than $150 in debt from its balance sheet. Upon emerging from Chapter 11, the company is also receiving a new $20 million equity investment from an affiliate of Quad-C Management Inc., the company’s principal stockholder. At that time, the company expects to have more than $30 million in liquidity.
“We are gratified by the confidence that our lenders, principal stockholder, customers and suppliers have shown in us throughout this process,” says Generation Brands President and Chief Executive Officer Tracy Bilbrough. “With their support, we have successfully addressed our balance-sheet issues and will emerge from our brief restructuring wit increased financial strength and a renewed commitment to providing innovative designs and quality products long into the future.”
The company established a dedicated Web site to post the latest developments of their restructuring process.