COLUMBUS, Ohio, Sept. 12 /PRNewswire/ -- Safelite Glass Corp. (D.B.A.
Safelite AutoGlass) today announced that its financial restructuring plan has
been approved by the US Bankruptcy Judge in Wilmington, DE.
Business continued as usual during the court-protected restructuring, and
the company exceeded expected profit levels for the first quarter ended
June 30, 2000. "We are extremely gratified to have received strong support
from our associates, our clients, and our vendors during this challenging
period," said John Barlow, Safelite President and CEO. "That we were able to
maintain customer satisfaction ratings of better than 98% is a testament to
the dedication of our associates."
The company's financial restructuring includes the conversion of
$317 million in long term debt to equity. The converted debt was held by the
company's banks and bondholders. More than 95% of these creditors supported
the restructuring plan.
With the plan approved, Safelite is well positioned to move forward with
plans to grow its share of the $3.2 billion auto glass business. The
conversion of one half of the company's long-term debt to equity has
dramatically improved Safelite's financial position. Interest and principal
payments on the long term debt will be decreased significantly, and cash flow
will increase. The restructuring will allow the company to continue its
aggressive investment in technology and claims processing services for its
insurance and fleet customers.
Recently, Safelite embarked on several new initiatives that will propel
the company's growth through 2000 and beyond:
* Mobile Pro operations in new markets provide high quality mobile auto
glass service in response to customer's demands for convenience
* Service AutoGlass provides a new wholesale distribution channel for
OE-equivalent windshield products produced by the company's two
* The Total Customer Solution (TCS) allows insurance and fleet clients to
outsource their auto glass claims processing for improved efficiency and
* Repair Medics repair windshield chips and cracks up to 6" long, saving
money for consumers and Safelite's insurance clients
Moving forward, the company's plans include efforts to leverage technology
solutions to provide expanded geographical coverage and claims processing
services for insurance and fleet companies. The company expects that the
remaining conditions of the Chapter 11 will be fulfilled within the next
several weeks, and the company will officially emerge from bankruptcy at that
Privately held Safelite Glass Corp. is the leader in the $3.2 billion auto
glass repair and replacement industry. Safelite is the only auto glass company
with representation in all 50 states, serving more than 80% of the US
population. The company's 6,200 associates provide auto glass repair and
replacement solutions for more than 2 million customers annually. For more
information, please visit the company's website at www.safelite.com .
SOURCE Safelite AutoGlass