Jason Industries files Chapter 11
Jason Industries filed for Chapter 11 bankruptcy protection on Wednesday in the Southern District of New York.
The action is part of a previously announced comprehensive restructuring plan that will deleverage the company’s balance sheet by $250 million. Jason expects its day-to-day operations to continue without interruption and without disruption to its employees, customers, suppliers and vendors.
Jason previously entered into a restructuring support agreement with holders of approximately 87 percent of its first lien debt. Under the plan, lenders have consented to provide Jason with the use of cash collateral to enable the company to operate its business and minimize the effect of the restructuring for the benefit of Jason’s stakeholders.
“We have aggressively taken steps to simplify Jason and improve the performance and financial strength of our company over the past three years. While these actions have generated positive momentum, we were not able to realize the full benefits of our plans due to market cyclicality and disruptions brought on by the COVID-19 global pandemic,” said Brian Kobylinski, chief executive officer. “Directly addressing our balance sheet will enable Jason and its operating businesses, Osborn and Milsco, to build upon our improved operational foundation and reap the benefits of recent cost-reductions and new business wins."
INDUSTRIAL SUPPLY MAGAZINE
The March/April issue of Industrial Supply magazine features an in-depth cover story about Joyce Lansdale and Vallen. Plus, we're featuring articles by contributing writers Dirk Beveridge, Frank Hurtte, and David Kahle, as well as interviews with numerous product and distribution industry experts.
