Real Alloy’s operations in Germany, United
Kingdom, Norway, Canada and Mexico are not included in the
filing
Real Alloy’s U.S. operations obtain
additional liquidity through DIP financing
Real Industry, Inc. (NASDAQ: RELY) (“Real Industry” or the
“Company”) today announced that it has initiated restructuring
efforts through the filing of a petition for voluntary Chapter 11
reorganization in the U.S. Bankruptcy Court for the District of
Delaware.
In conjunction, Real Alloy Holding, Inc. and its U.S.
subsidiaries (“Real Alloy”) today filed petitions for voluntary
Chapter 11 reorganization in the U.S. Bankruptcy Court for the
District of Delaware. Real Alloy’s operations in Germany, United
Kingdom, Norway, Canada and Mexico and its Goodyear, Ariz. joint
venture are not included in these filings. During the Chapter 11
process, Real Alloy expects to conduct business as usual in the
United States and worldwide and to continue to provide customers,
suppliers and other business partners with the high level of
service and performance they have come to expect from Real
Alloy.
Summary Points on Chapter 11 Proceedings:
- Real Alloy has entered into an
agreement in principle with its existing asset-based facility
lender and certain of its bondholders for continued use of its $110
million asset-based lending facility and up to $85 million of
additional liquidity through debtor-in-possession (“DIP”) financing
that will provide Real Alloy the ability to continue to fund
ongoing business operations.
- This DIP financing is a consensual
arrangement executed with Real Alloy’s principal lender and holders
of a majority of its bonds, with the ability to provide Real Alloy
with immediate incremental liquidity.
- This substantially increased liquidity
at Real Alloy provides it with the financial flexibility to
continue to serve its customers and pay its suppliers.
- Real Industry will initiate a plan of
reorganization to preserve the value of its net operating loss tax
carryforwards (“NOLs”).
Real Alloy
Real Alloy’s operations in the United States have been affected
by severely tightened liquidity during the past year, due in part
to recently constrained trade credit terms, which hindered Real
Alloy’s ability to timely refinance its $305 million 10% senior
secured notes due January 2019 (“Senior Secured Notes”) or to
expand borrowing capacity under its asset-based lending facility.
An extensive review by the Real Industry Board of Directors, Real
Alloy Board, management, and advisors determined it would be in the
best interest of all Real Alloy stakeholders to initiate the
Chapter 11 proceedings.
Real Alloy will undertake this process with enhanced liquidity
in the form of DIP financing including a combination of continued
use of Real Alloy’s $110 million asset-based lending facility, and
up to $85 million in incremental liquidity provided by certain
holders of the Senior Secured Notes to maintain normal operations
while Real Alloy continues the process of improving its long-term
capitalization, including addressing the Senior Secured Notes. The
DIP financing also includes the conversion of $170 million of
Senior Secured Notes into new notes. Subject to court approval,
which is anticipated shortly, this DIP financing combined with
funds generated from ongoing operations will be used to support
Real Alloy’s normal operating and working capital requirements,
including employee wages, salaries and benefits, and supplier
payments during the reorganization effort under Chapter 11. Real
Alloy has filed the customary motions in order to make these and
other normal operating payments during the Chapter 11 proceedings
and expects to receive such approval shortly.
Not included in the Chapter 11 filings are Real Alloy’s
operations in Germany, United Kingdom, Norway, Canada, and Mexico
and its Goodyear, Ariz. joint venture. Real Alloy’s European
operations are funded by their own generated cash flows and through
a dedicated €50-million Factoring Facility. As part of the
reorganization, Real Alloy will not draw funds out of Real Alloy
Europe to support North American needs, and further, up to $20
million of the DIP financing will be reserved for potential funding
required by Real Alloy Europe. Real Alloy’s Mexican, Canadian and
Goodyear, Ariz. joint venture operations are similarly supported by
their own cash flows.
Real Industry
As a holding company, Real Industry relies on the operations of
its subsidiaries and external financing sources for its liquidity
needs. During the past year, the holding company’s liquidity and
financial position declined to levels where the Board of Directors
of the Company concluded that it was in the best interests of the
Company to reorganize under a Chapter 11 filing. Real Industry has
initiated efforts to develop a plan of reorganization to attempt to
preserve the value of the NOLs. During this process, the Company
will cut costs to maintain as much liquidity as possible.
Management
Mr. Terry Hogan will continue to lead Real Alloy as President,
and he has been elected to the Real Alloy Board of Directors.
In connection with the filing of Chapter 11 proceedings, Mr.
Michael Hobey has been named President and Interim Chief Executive
Officer at Real Industry, and he will continue to serve as Chief
Financial Officer at the Company. Mr. Hobey will also serve as
Chief Financial Officer at Real Alloy.
Mr. Kyle Ross will continue to serve as Chief Investment Officer
at Real Industry. Mr. Ross has resigned from the Real Industry
Board of Directors.
Additional Information
Court filings and other information related to the
court-supervised proceedings are available at a website
administered by the Company’s claims agent, Prime Clerk, at
https://cases.primeclerk.com/realindustry.
Cautionary Statement Regarding Forward-Looking
Statements
This release contains forward-looking statements, which are
based on our current expectations, estimates, and projections about
the Company’s and its subsidiaries’ businesses and prospects, as
well as management’s beliefs, and certain assumptions made by
management. Words such as “anticipates,” “expects,” “intends,”
“plans,” “believes,” “seeks,” “estimates,” “may,” “should,” “will”
and variations of these words are intended to identify
forward-looking statements. Such statements speak only as of the
date hereof and are subject to change. The Company undertakes no
obligation to revise or update publicly any forward-looking
statements for any reason. These statements are not guarantees of
future performance and are subject to certain risks, uncertainties,
and assumptions that are difficult to predict. Forward-looking
statements discuss, among other matters: our financial and
operational results, as well as our expectations for future
financial trends and performance of our business in future periods;
our strategy; risks and uncertainties associated with Chapter 11
proceedings; the negative impacts on our businesses as a result of
filing for and operating under Chapter 11 protection; the time,
terms and ability to confirm a Chapter 11 plan of reorganization
for our businesses; the adequacy of the capital resources of our
businesses and the difficulty in forecasting the liquidity
requirements of the operations of our businesses; the
unpredictability of our financial results while in Chapter 11
proceedings; our ability to discharge claims in Chapter 11
proceedings; negotiations with our holders of our Senior Secured
Notes, our asset-based facility lender, and our trade creditors;
risks and uncertainties with performing under the terms of the DIP
financing and any other arrangement with lenders or creditors while
in Chapter 11 proceedings; our ability to retain employees,
suppliers and customers as a result of Chapter 11 proceedings; Real
Alloy’s ability to conduct business as usual in the United States
and worldwide; Real Alloy’s ability to continue to serve customers,
suppliers and other business partners at the high level of service
and performance they have come to expect from Real Alloy; Real
Alloy’s ability to continue to pay suppliers; Real Alloy’s ability
to fund ongoing business operations through the DIP financing; the
use of the funds anticipated to be received in the DIP financing;
the ability to control costs during Chapter 11 proceedings; the
risk that our Chapter 11 proceedings may be converted to cases
under Chapter 7 of the Bankruptcy Code; the ability of the Company
to preserve and utilize the NOLs following Chapter 11 proceedings;
Real Industry’s ability to secure operating capital; our ability to
take advantage of opportunities to acquire assets with upside
potential; Real Industry’s ability to execute on its strategic plan
to evaluate and close potential M&A opportunities; our
long-term outlook; our preparation for future market conditions;
and any statements or assumptions underlying any of the foregoing.
Such statements are not guarantees of future performance and are
subject to certain risks, uncertainties, and assumptions that are
difficult to predict. Accordingly, actual results could differ
materially and adversely from those expressed in any
forward-looking statements as a result of various factors.
Important factors that may cause such differences include, but
are not limited to, the decisions of the bankruptcy court;
negotiations with our debtholders and creditors; our ability to
meet the requirements, and compliance with the terms, including
restrictive covenants, of the DIP financing and any other financial
arrangement while in Chapter 11 proceedings; adverse litigation;
changes in domestic and international demand for recycled aluminum;
the cyclical nature and general health of the aluminum industry and
related industries; commodity and scrap price fluctuations and our
ability to enter into effective commodity derivatives or
arrangements to effectively manage our exposure to such commodity
price fluctuations; inventory risks, commodity price risks, and
energy risks associated with Real Alloy’s buy/sell business model;
the impact of tariffs and trade regulations on our operations; the
impact of any changes in U.S. or non-U.S. tax laws on our
operations or the value of our NOLs; our ability to successfully
identify, acquire and integrate additional companies and businesses
that perform and meet expectations after completion of such
acquisitions; our ability to achieve future profitability; our
ability to control operating costs and other expenses; that general
economic conditions may be worse than expected; that competition
may increase significantly; changes in laws or government
regulations or policies affecting our current business operations
and/or our legacy businesses, as well as those risks and
uncertainties disclosed under the sections entitled “Risk Factors”
and “Management’s Discussion and Analysis of Financial Condition
and Results of Operations” in Real Industry, Inc.’s Forms 10-Q
filed with the Securities and Exchange Commission (“SEC”) on May
10, 2017, August 8, 2017 and November 9, 2017 and Form 10-K filed
with the SEC on March 13, 2017, and similar disclosures in
subsequent reports filed with the SEC, which are available on our
website at www.realindustryinc.com and on the SEC website at
https://www.sec.gov.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20171117005256/en/
Real Industry, Inc.Jeehae Shin,
212-201-4126investor.relations@realindustryinc.comorThe Equity
Group, Inc.Adam Prior,
212-836-9606aprior@equityny.comorCarolyne Y. Sohn,
415-568-2255csohn@equityny.com
Elah (PK) (USOTC:ELLH)
過去 株価チャート
から 11 2024 まで 12 2024
Elah (PK) (USOTC:ELLH)
過去 株価チャート
から 12 2023 まで 12 2024
