Court Action Ensures Business as Usual for Customers, Suppliers and Employees During Brief Restructuring

Plan of Reorganization May be Approved by Confirmation Hearing Set for January 15, 2010

CARY, N.C., Dec. 9 /PRNewswire/ -- Generation Brands, a leading provider of lighting fixtures and ceiling fans for the building construction and home improvement industries, announced today that Judge Peter J. Walsh of the U.S. Bankruptcy Court in Wilmington, Delaware, yesterday approved the Company's requests to permit it to continue working with its customers, suppliers and employees in the normal course. The Court also determined that it will hold a hearing to consider confirmation of the proposed pre-packaged plan of reorganization on January 15, 2010. If the plan is approved at the hearing, the Company expects to emerge from bankruptcy by the end of January.

The Company received Court permission to pay its suppliers in the ordinary course of business, including with respect to goods and services provided before the December 4 Chapter 11 filing. The Company also said that it received Court authority to pay pre-petition employee wages and benefits and commissions to sales agents. The Company's various customer programs, including rebates, discounts and warranties, will continue as they always have.

"We are pleased that the Court approved our first-day motions, ensuring that our customers, employees and suppliers will see no difference in our daily operations," said President and Chief Executive Officer T. Tracy Bilbrough.

The Company said it received interim Court approval to use its cash collateral to fund its operating expenses. As previously announced, the Company received commitments for a $20 million debtor-in-possession (DIP) revolving credit facility which will provide the Company with additional liquidity during its brief restructuring period. The bankruptcy court will consider approval of the DIP financing on December 23, 2009.

"With our confirmation hearing set for January 15, 2010, we are on track to successfully complete the restructuring of our balance sheet, eliminating more than $150 million of debt, and emerge from Chapter 11 by the end of January," Mr. Bilbrough concluded.

The Company filed its voluntary petitions in the U.S. Bankruptcy Court for the District of Delaware in Wilmington. The Company was advised in connection with its pre-packaged Chapter 11 financial reorganization by White & Case LLP and Barclays Capital.

For further information, please contact the Company's information line at 866-360-3479, or visit the Company's restructuring website at www.generationrestructures.com.

About Generation Brands

Generation Brands is one of America's leading companies serving the lighting, electrical wholesale, home improvement, home decor, and building industries. The company has an outstanding portfolio of fashionable and functional lighting fixtures, ceiling fans, and decorative products that provide value and growth for our customers and end-users. Our success is derived from our ability to serve our customers and end-users with superior service, leading edge design, and outstanding quality. We continue to increase marketing investments and develop operating and product synergies that enhance our value to the many markets we serve.

SOURCE Generation Brands

Back to top

RELATED LINKS
http://www.generationrestructures.com