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Chassix Completes Prearranged Restructuring, Emerges From Chapter 11

July 30, 2015, 07:49 AM
Filed Under: Bankruptcy

Chassix Holdings, Inc. and its U.S. subsidiaries has successfully completed its prearranged restructuring and recapitalization and emerged from Chapter 11 bankruptcy protection. Through its prearranged Chapter 11 plan, Chassix substantially reduced its outstanding debt obligations, secured approximately $300 million in new exit financing, including $150 million from certain of the company’s prepetition noteholders, and secured significant long-term new business commitments and support from its largest customers. The company believes this has created a strong foundation for long-term success.

“Today marks the completion of a restructuring and recapitalization that allows Chassix to move forward with a solid financial foundation from which we expect to be able to operate successfully and grow,” said Mark Allan, Chief Executive Officer of Chassix. “We now have the financial flexibility to continue executing on our ongoing operational improvements and production enhancements so that we can better meet the significant demand for our products. On behalf of the management team, I would like to extend my gratitude to our employees for their hard work and dedication and to our customers, suppliers, lenders, sponsor, board members and advisors for their support during this process."

Chassix also announced a newly constituted Board of Directors, effective in conjunction with the company’s emergence from Chapter 11.

Allan said, “Our newly constituted Board includes a diverse group of individuals with a range of experience and expertise that will bring fresh perspective to Chassix. We look forward to benefitting from their guidance as we embark on our new beginning.”

Weil, Gotshal & Manges LLP served as legal counsel and Lazard served as financial advisor to Chassix. FTI Consulting, Inc. provided interim management services to Chassix.

Chassix represents a $1.4 billion, privately held automotive supplier of precision casting and machining solutions. The brand was launched in 2013 following the integration of the businesses of SMW Automotive, LLC and Diversified Machine, Inc. The Company is focused on delivering high-quality, precision ductile iron and aluminum chassis components, with more than 4,500 employees in 26 locations in every key region of the world.

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