US: The Wornick Company completes financial restructuring
The Wornick Company, a manufacturer of ready-to-eat shelf stable food, has successfully completed its financial restructuring and emerged from Chapter 11.
The company's plans to emerge from bankruptcy have been confirmed by the US Bankruptcy Court for the Southern District of Ohio in Cincinnati.
The plan is based on the sale of Wornick's equity to Viren Acquisition, which is made up of investors who hold about 85% of the company's senior secured notes.
The closing of the transaction is expected to take place in early July.
Wornick has also closed on a US$35m exit financing facility which is being provided from certain funds and accounts managed by DDJ Capital Management. The exit financing includes a $10m term loan and $25m in revolving credit facilities.
"This is an exciting day for Wornick and all of our employees," said Jon Geisler, president and CEO of The Wornick Company. "We accomplished what we set out to do at the beginning of this process. We reduced our burdensome long-term debt and restored our financial stability. We have made significant improvements to our operations and with a more appropriate level of debt, we can utilise our resources to make the necessary investments to improve and grow our business.
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