CARY, N.C., Jan. 15 /PRNewswire/ -- Generation Brands, a leading provider of lighting fixtures and ceiling fans for the building construction and home improvement industries, announced today that the U.S. Bankruptcy Court has confirmed the Company's pre-packaged Chapter 11 plan of reorganization. The Court's approval of the plan, which had received the strong support of the Company's lenders and noteholders, clears the way for Generation Brands to emerge from Chapter 11 by the end of January, less than two months after the Dec. 4 filing.
Under the plan, as confirmed by the Court, Generation Brands will improve its financial flexibility by eliminating more than $150 million of debt from its balance sheet, reducing interest expense and extending maturities until 2014. Upon its emergence from Chapter 11, the Company is also receiving a new $20-million equity investment from an affiliate of Quad-C Management, Inc., the Company's principal stockholder. At that time, Generation Brands expects to have more than $30 million in liquidity.
"We are gratified by the confidence that our lenders, principal stockholder, customers and suppliers have shown in us throughout this process," said Generation Brands President and Chief Executive Officer T. Tracy Bilbrough. "With their support, we have successfully addressed our balance-sheet issues and will emerge from our brief restructuring with increased financial strength and a renewed commitment to providing innovative designs and quality products long into the future."
Mr. Bilbrough added: "I deeply appreciate the dedication and hard work of our employees and sales agents. Thanks to their efforts, our operations have not missed a beat during our restructuring."
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