The United States Bankruptcy Court for the Southern District of New York confirmed Jason Industries’ plan of reorganization, clearing the way for the company to complete its Chapter 11 financial restructuring and emerge in the coming days.
Upon emergence, Jason will be a private company backed by the ownership of its existing senior secured lenders, including Monomoy Capital Partners and Credit Suisse Asset Management, each of which will appoint representatives to serve on the new board of directors. Jason will reduce its debt by approximately $250 million, ensuring that Jason and its businesses Osborn and Milsco will have financial flexibility to support ongoing operations and pursue its strategic plan for the benefit of its employees, customers and business partners. As part of the new capital structure and to ensure sufficient liquidly upon exit from Chapter 11, Jason will enter into a $30 million ABL credit facility with Wells Fargo. Pursuant to the plan, Jason’s common and preferred stock will be cancelled, and holders thereof will not receive any recovery.
“We are thankful to our many stakeholders, including our creditors, customers, employees and vendors for their ongoing support,” Brian Kobylinski, chairman and CEO of Jason Industries, said. “The confidence our stakeholders maintain in Jason’s long-term value creation opportunities enabled us to reach this milestone in an expedited time frame. We look forward to emerging from restructuring as a financially stronger company, which will enable us to capture the full benefits of the operational improvements, cost reductions and growth initiatives implemented prior to the COVID-19 global pandemic.”
“We’re very pleased with the outcome of the company’s reorganization, and we look forward to working with management to ensure that both Osborn and Milsco have the necessary financial and operational resources to deliver profitable growth for years to come,” Dan Collin, co-CEO of Monomoy and incoming chairman of Jason’s board, said.
Moelis & Company is acting as financial advisor, Kirkland & Ellis is acting as legal counsel and AlixPartners is acting as restructuring advisor to Jason Industries in connection with the restructuring. Houlihan Lokey Capital is acting as financial and restructuring advisor and Weil, Gotshal & Manges is acting as legal counsel to the first lien ad hoc group.