CARY, N.C., Jan. 26 /PRNewswire/ -- Generation Brands, a leading provider of light fixtures and ceiling fans for the building construction and home improvement industries, announced today that it has successfully completed its financial restructuring and emerged from Chapter 11, eliminating more than $150 million of debt from its balance sheet.
In conjunction with its emergence from Chapter 11, Generation Brands has received a new $20 million equity investment from an affiliate of Quad-C Management, Inc., the Company's principal stockholder. With this new investment, the Company has approximately $40 million in liquidity and no debt maturities until 2014.
"Just 53 days after filing for Chapter 11, we were able to significantly de-lever the Company's balance sheet, ensure more than sufficient liquidity to support our working capital needs and emerge from Chapter 11 with the flexibility to pursue ongoing investments in new product development," said Generation Brands President and Chief Executive Officer T. Tracy Bilbrough.
"Our expeditious restructuring is a testament to our devoted employees, dedicated customers and suppliers and the strong relationship we have with our lenders, noteholders and stockholders," Mr. Bilbrough added.
This financial restructuring has sharply reduced the Company's debt and interest payments, better positioning Generation Brands to capitalize on opportunities both in the current market and emanating from the recovery of the housing industry and economy at large.
The Company also noted that throughout its brief Chapter 11 restructuring, it met all of its customer supply needs without interruption. The Company was also able to achieve its restructuring goals without impacting its suppliers, who continued to be paid normally in the ordinary course of business.
"During this process, Generation Brands met all of its financial targets. I believe that everyone at the Company is energized and excited to continue this success as we begin operating outside of Chapter 11," 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.
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