Spectrum Brands exits chapter 11
The Associated Press (AP) reports Spectrum Brands Inc., which makes Rayovac batteries and other products, emerged from bankruptcy after meeting all closing conditions of the company’s reorganization plan, according to the U.S. Bankruptcy Court for the Western District of Texas, San Antonio Division.
Additionally, the company closed on a new $242 million exit financing facility, which will be available for the company’s working capital needs.
Spectrum Brands will pay its suppliers in full for outstanding invoices, if it hasn’t done so already; but the company’s old common stock has been cancelled and holders of that stock will get nothing. The company’s bondholders will be issued 27 million shares of new common stock and $218 million in 12 percent senior subordinated notes due 2019. About 3 million shares of new common stock will be issued to participants in Spectrum’s debter-in-possession loan facility, AP reports.
