Acosta Inc. on Monday said it has received bankruptcy court approval of its prepackaged reorganization and it expects to successfully emerge from Chapter 11 in the coming days.<\/p>\n
The Jacksonville-based sales and marketing company, along with several affiliated companies, filed Chapter 11 petitions Dec. 1 in U.S. Bankruptcy Court for the District of Delaware.<\/p>\n
The main case was filed under the name Anna Holdings Inc., a holding company formed by The Carlyle Group when the investment firm bought Acosta for $4.75 billion in 2014.<\/p>\n
Acosta said in a news release Monday the reorganization plan eliminates about $3 billion in debt.<\/p>\n
Acosta said in a memorandum of law filed Saturday in support of confirmation that it began negotiating with lenders to restructure the debt in August and by November, it had approval of a majority of creditors.<\/p>\n
The memorandum said it now has unanimous support of all holders of the $3 billion, who will receive stock in exchange for the debt.<\/p>\n
The Plan, and the remarkable consensus it represents, is the product of months of good-faith, arms-length negotiations among the Debtors, their first lien lenders, senior noteholders, and other key constituents, who all worked towards a consensual, value-maximizing restructuring, it said.<\/p>\n
Court documents have not specified the creditors who will end up owning Acostas stock.<\/p>\n
The restructuring includes a rights offering and direct investment to bring $325 million in new capital, sending a strong message to the Debtors employees, vendors, clients, and other business partners that they are well positioned for future success, the memorandum said.<\/p>\n
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Acosta says the court approved its bankruptcy reorganization - Jacksonville Daily Record<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" Acosta Inc. Continue reading