UPG Parent Files Chapter 11
Spectrum Brands (Atlanta) and its U.S. subsidiaries on Feb. 3 voluntary filed for Chapter 11 reorganization protection in the U.S. Bankruptcy Court for the Western District of Texas, San Antonio Division.
The company is working with noteholders to restructure the debt of all of its businesses, which include Tetra, Marineland and 8 in 1. Its refinancing plan would erase about one third of its debt ($840 million), eliminate approximately $95 million in annual cash interest payments for at least each of the next two years, and free up additional cash that can be reinvested in its business to support meaningful revenue and profit growth.
The company currently has outstanding indebtedness of approximately $2.6 billion.
The company’s foreign operations, which are legally separate, are not included in the Chapter 11 proceedings.
Spectrum does not expect to lay off any of its 6,000 employees or sell assets, the company said. It expects to be out of Chapter 11 protection in four to six months.
For more information, including the company’s most recent returns, go to www.spectrumbrands.com. [April 2009 PET AGE]
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