Credit Suisse Supports AMF Reorg Plan With $260MM
AMF Bowling Worldwide filed a new Chapter 11 plan of reorganization and disclosure statement sponsored by Strike Holdings (Bowlmor), and certain of AMF’s second lien lenders, including Cerberus Series Four Holdings (Cerberus) and Credit Suisse.
The plan provides that AMF will be reorganized and combined with Bowlmor to form a company that will be known as Bowlmor AMF, which would be the largest operator of bowling centers in the world with 7,500 employees, 276 bowling centers and combined annual revenues of approximately $450 million.
The plan provides that AMF’s second lien lenders will convert their debt into equity in Bowlmor AMF, so that Bowlmor AMF will be owned jointly by the financial institutions that hold AMF’s second lien debt and by equity holders in Bowlmor.
Credit Suisse will provide a term loan facility in the principal amount of $230 million, and a revolving loan facility in the principal amount of $30 million. The largest holders of AMF’s existing second lien debt have expressed their confidence in the new company by providing $50 million of backstop financing, which will be used to provide working capital for Bowlmor AMF and to pay cash distributions in varying amounts to AMF’s other creditors.
In addition to second lien lenders, the plan has the support of the official committee of unsecured creditors. AMF’s first lien lenders will receive payment in full, in cash, of principal, interest at the non-default rate, and their fees.
The next step in this process is a hearing set for May 23, 2013 at which the Bankruptcy Court in VA overseeing AMF’s chapter 11 case will be asked to approve the disclosure statement so that the plan can be sent to AMF’s creditors for approval. Assuming that the Bankruptcy Court approves the disclosure statement, the plan will be sent out for a vote and the Bankruptcy Court will schedule a hearing to confirm the plan. Pending court approval, AMF could emerge from bankruptcy and combine with Bowlmor by the end of June.
Previously on abfjournal.com: