ANDERSON, Ind., July 31 /PRNewswire-FirstCall/ -- Remy International, Inc. announced today that it has reached agreements with General Motors Corporation (GM) with respect to the extension and enhancement of the Company's existing supply relationship with GM. The new GM arrangement is an important development in the furtherance of the Company's financial restructuring. While certain aspects of the arrangement will be implemented immediately, the agreement will become fully effective upon the consummation of the Company's financial restructuring.
"We are extremely pleased to have reached agreement with GM on a comprehensive restructuring of our commercial arrangement. We look forward to a long and mutually beneficial relationship with GM," said John Weber, Remy's chief executive officer.
The Company also announced that it has obtained a binding commitment from Barclays Capital, the investment banking division of Barclays Bank PLC, to provide debtor-in-possession (DIP) financing of up to $225 million and $330 million of long-term exit financing, subject to certain closing conditions and documentation.
As a result of finalizing these two critical aspects of its financial restructuring, the Company will commence a solicitation of votes on its prepackaged chapter 11 by mid-August. As previously announced, the terms of its consensual financial restructuring with its noteholders contemplates that all trade creditors, employees and suppliers will continue to be paid in the ordinary course of business.
The terms of the financing commitment will be more fully described in the Solicitation and Disclosure Statement, which will be available on the Company's website once the solicitation period has commenced.
This press release is for informational purposes only and is not a solicitation to accept or reject the proposed prepackaged plan of reorganization referred to herein or an offer to sell or a solicitation of an offer to buy any securities of the Company. Any solicitation or offer to sell only will be made pursuant to and in accordance with the solicitation and disclosure statement, if and when distributed by the Company to certain of its noteholders and applicable law.
About Remy
Remy International, headquartered in Anderson, Indiana, is a leading manufacturer, remanufacturer and distributor of Delco Remy brand heavy-duty systems and Remy brand starters and alternators, locomotive products and hybrid power technology. The Company also provides a worldwide components core-exchange service for automobiles, light trucks, medium and heavy-duty trucks and other heavy-duty, off-road and industrial applications.
Caution Regarding Forward-Looking Statements:
This press announcement contains statements relating to future results of the Company that are forward-looking statements. Any statements set forth in this press announcement with regard to its expectations as to financial results and other aspects of its business may constitute forward-looking statements. These statements relate to the Company's future plans, objectives, expectations and intentions and may be identified by words like "believe," "expect," "may," "will," "should," "seek," or "anticipate," and similar expressions. The Company cautions readers that any such forward-looking statements are based on assumptions that the Company believes are reasonable, but are subject to a wide range of risks including, but not limited to, risks associated with the satisfaction of the conditions precedent to the previously announced plan aupport agreement including but not limited to the occurrence of a termination event, thereunder, the satisfaction of conditions precedent to funding occurring under both DIP and exit financing loan commitments and the occurrence of a termination event thereunder, the effect of a default under the indentures governing the Notes, future financial results and liquidity including the Company's continued ability to finance its operations in the normal course during the solicitation of votes on the Company's prepackaged plan and to make required interest payments, the continuation of forbearance agreements with respect to certain defaults and payments andthe potential necessity for additional forbearance agreements, the possibility that the Company may need to commence a chapter 11 proceeding other than in accordance with the proposed prepackaged plan, fluctuation of the borrowing base and other limitations that may affect the Company's ability to borrow under its revolving credit facilities or otherwise, the Company's relationship with and payment terms provided by its trade creditors, additional financing requirements, the results of renegotiating certain key commercial agreements, dispositions, acquisitions and integration costs, development of new products and services, the effect of competitive products or pricing, the effect of commodity and raw material prices, the impact of supply chain cost management initiatives, restructuring risks, enterprise resource planning implementation risks, customs duty claims, litigation uncertainties and warranty claims, conditions in the automotive industry, foreign currency fluctuations, costs related to re-sourcing and outsourcing products, the effect of economic conditions and other uncertainties previously detailed in the Company's filings with the SEC. Due to these uncertainties, the Company cannot assure readers that any forward-looking statements will prove to have been correct. Remy International is under no obligation to (and expressly disclaims any such obligation to) update or alter any forward-looking statements whether as a result of new information, future events or otherwise.