Black Diamond Capital Leads Reichhold Debt-For-Equity Exchange
Reichhold announced the purchase of most of the assets of the U.S. business was completed. This transaction, approved by the U.S. Bankruptcy Court for the District of Delaware on January 12, 2015, allows Reichhold’s U.S. businesses to successfully emerge from bankruptcy and re-join the rest of the global Reichhold organization.
Concurrent with this purchase, Reichhold completed a debt-for-equity exchange with a group of investors led by Black Diamond Capital Management and including J.P. Morgan Investment Management, Third Avenue Management and Simplon Partners. As a result of that transaction, Reichhold is now owned by those and other investors.
Reichhold is a privately held entity with a stronger balance sheet, having shed some major legacy liabilities while eliminating the high yield bond debt.
“Today is a great day for our customers, suppliers and employees. Our company has remained intact, and we are better positioned than ever to leverage the strengths of our global business and industry-leading brands to bring new solutions to our customers. We will use our stronger balance sheet to drive operational improvement and to increase profitability. We are better capitalized and have a solid financial foundation for future growth. We have emerged from this process even more capable of developing and delivering the innovative products and services that our customers value. Our new products continue to gain traction in the marketplace, and we continue to deliver innovation which serves unfilled needs in our industry. With the support of our new owners, key stakeholders, advisors and the hard work and commitment of our employees, we are pleased that we have successfully navigated this process in a very short time period while operating our business as usual and without interruption. We are appreciative of all who have supported us during the past few months, and as we begin our 88th year, we are as committed as ever to growing our business and improving our industry,” said John S. Gaither, president and CEO of Reichhold.
Durham, NC-headquartered Reichhold is a manufacturer of unsaturated polyester resins and a supplier of coating resins for the industrial, transportation, building and construction, marine, consumer and graphic arts markets.