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Chassix Receives Court Approval of Disclosure Statement

April 24, 2015, 07:14 AM
Filed Under: Bankruptcy

Chassix Holdings, Inc. announced that the company and its U.S. subsidiaries have received approval from the United States Bankruptcy Court for the Southern District of New York (the “Court”) of the Disclosure Statement (the “Disclosure Statement”) filed in connection with the Company’s pre-negotiated restructuring and recapitalization (the “Plan”). Approval of the Disclosure Statement allows Chassix to solicit approval of the Plan from its creditors. The hearing to consider approval of the Plan by the Bankruptcy Court is scheduled to commence on June 30, 2015.
As previously announced, the Plan is supported by approximately 80% of the Company’s unsecured bondholders and approximately 73% of its senior secured bondholders, its existing sponsor, and all of the Company’s largest customers. Among other things, the Plan provides for a debt-for-equity swap that will significantly reduce the Company’s outstanding bond debt and debt payment obligations.

“The Court's authorization allows us to begin the solicitation of votes on our pre-negotiated Plan and represents another positive milestone in Chassix’s restructuring process, following the Court’s recent approval of our $250 million DIP financing and the Exit Financing Commitment providing access to $45 million of additional liquidity,” said Mark Allan, Chassix Chief Executive Officer. “We already have significant support of the Plan from our bondholders, existing sponsor and all of our largest customers, which combined with the assurances that the necessary exit financing will be available to Chassix, make us confident in our ability to emerge from Chapter 11 in the Summer of 2015. We look forward to emerging as a robust, well-capitalized global automotive supplier and thank all of our stakeholders for their support throughout this process. We remain as focused as ever on providing our customers with high-quality products and service in the coming months and ensuring that our operations continue in the ordinary course.”

Chassix will begin the process of soliciting votes for the Plan from eligible stakeholders immediately following entry of the order. The Court has set a voting deadline of June 19, for eligible stakeholders. The Plan is subject to confirmation by the Bankruptcy Court.

Weil, Gotshal & Manges LLP is serving as legal counsel and Lazard Freres & Co. LLC is serving as financial advisor to Chassix. FTI Consulting is providing interim management services to Chassix, including operational evaluation, business plan development and strategy implementation. This release is not intended as a solicitation for a vote on the Plan.

Chassix represents a $1.4 billion, privately held automotive supplier of precision casting and machining solutions.

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