Bank of America will provide debtor-in-possession financing to fund the restructuring process of Techniplas, which filed for voluntary Chapter 11 protection in the U.S. Bankruptcy Court for the District of Delaware.
Bank of America was already the agent and lender for Techniplas’ existing ABL credit facility. Techniplas will use the DIP financing to fund its restructuring process, including expenses, and Techniplas operations, including current growth initiatives.
Techniplas also entered into an agreement with a group of noteholders holding approximately 95% of its senior notes.
The Chapter 11 filings and restructuring process do not include the company’s subsidiaries outside of the United States. Techniplas’s international customers and operations, as well as the majority of those in the U.S., will not be impacted by this process.
“We are proud of the confidence represented by the agreement with our noteholders,” Ali El-Haj, CEO of Techniplas, said. “This solution charts a positive path forward for the company, despite the challenges presented by the global COVID-19 pandemic. We are confident the proposed transaction will make us a stronger partner and employer, better able to focus our U.S. footprint, operations and utilization. We look forward to emerging from this process swiftly with an improved financial structure and balance sheet. Backed by marquee institutions who know Techniplas and our management team well, we are laser-focused on sustainable growth while we continue to provide the same high-quality products and support our customers associate with Techniplas.”
As part of the reorganization process, Techniplas filed a number of customary motions that will allow the company to continue operating in the ordinary course upon approval, which is expected in the first few days of the process. Techniplas intends to pay vendors in full under customary terms for all goods and services received after the filing. The expedited sale process is expected to be completed in early summer.
Techniplas is represented by White & Case, FTI Consulting and Miller Buckfire. The ad hoc group of noteholders is represented by Arnold & Porter Kaye Scholer and Houlihan Lokey.
Techniplas is a provider of engineered technical solutions to the automotive, transportation and industrial markets.
