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KEY PLASTICS L.L.C. ANNOUNCES CONFIRMATION OF PREPACKAGED PLAN OF REORGANIZATION
NORTHVILLE,
Key Plastics L.L.C. (the “Company”), one of the leading manufacturers of engineered plastic components for the global automotive industry, announced that its prepackaged plan of reorganization, which was overwhelmingly approved by creditors, has been confirmed. Consummation of the plan will result in the conversion of $115 million of senior secured debt into equity and the infusion of an additional $20 million in equity. The equity investment will be led by Wayzata Investment Partners LLC, which will become the Company’s controlling shareholder. In addition, prior to effectiveness of the plan, presently targeted for mid-February, the Company will enter into a new $25 million credit facility. Throughout its restructuring, the Company has continued to satisfy its customers’ requirements in full on normal business terms, and all obligations owed to trade creditors, suppliers, and employees in the ordinary course have been unaffected. Ralph Ralston, President & COO of the Company’s North American operations, stated, "We are pleased to have achieved this critical milestone exactly on schedule. This significant deleveraging of our balance sheet, combined with the new equity investment and available credit facility, will provide Key Plastics with the financial profile and liquidity necessary to continue to provide quality products and service to our customers worldwide. During the next few weeks, we will complete the final necessary steps towards a timely effective date to exit the process. We are grateful to our customers, suppliers, employees, and new shareholders for their cooperation and effort during this transition. As a result of the proactive decisions we made last fall with regard to our restructuring, we are confident that Key Plastics is well-positioned to serve existing and new customers as the industry rationalization plays out over the coming months.” About Key Plastics, L.L.C. Key Plastics is a leading supplier of a broad range of highly engineered plastic components and functional assemblies to manufacturers of light vehicles and their tier one suppliers in North America, Europe, and Asia. In North America, the Company has strong market positions in door handles, pressurized fluid reservoirs, and other precision molded parts. In Europe, the Company has strong market positions in decorative bezels, center consoles, air vents and other mechanisms, decorative trim, and underhood technical components. Key Plastics employs approximately 5,000 personnel in North America, Europe, and Asia. |
