Court approves Jason Industries reorganization plan
The United States Bankruptcy Court for the Southern District of New York has confirmed the reorganization plan for Jason Industries.
The move clears the way for Jason to complete its Chapter 11 financial restructuring and emerge from bankruptcy.
Upon emergence, Jason will be a private company backed by the ownership of its existing senior secured lenders, including Monomoy Capital Partners and Credit Suisse Asset Management, which will appoint representatives to serve on the new board of directors. Jason will reduce its debt by approximately $250 million.
As part of the new capital structure and ensuring that the company has sufficient liquidly after exiting from Chapter 11, Jason will enter into a $30 million asset-based lending credit facility with Wells Fargo Bank, National Association. The company’s common and preferred stock will be cancelled, and holders will not receive any recovery.
“We are thankful to our many stakeholders, including our creditors, customers, employees, and vendors for their ongoing support,” said Brian Kobylinski, chairman and chief executive officer. “The confidence our stakeholders maintain in Jason’s long-term value creation opportunities enabled us to reach this milestone in an expedited timeframe.”
The Milwaukee-based company's two brands include Osborn, a provider of metal preparation, polishing and finishing products, and Milsco, a manufacturer of seating solutions for numerous powersport and off-road applications.
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.
