Mark Knoy, President as well as Chief Executive Officer of American Commercial Lines: “With this plan, we will have more liquidity to support our operations through economic cycles and weather patterns and additional financial flexibility for fleet management.”
Jeffersonville, Ind., headquartered American Commercial Lines Inc., among America’s biggest barge transport business, records that it has actually become part of a restructuring assistance arrangement (RSA) with a considerable bulk of its term car loan lending institutions on a “pre-packaged” strategy to recapitalize business as well as substantially lower the firm’s financial debt.
Under the regards to the RSA, ACL will certainly obtain $200 million in brand-new funding to sustain liquidity as well as financial investments in business. In enhancement, the RSA attends to a decrease of financed financial debt by roughly $1 billion.
To apply the RSA, the firm as well as particular associated entities are presently in the procedure of obtaining authorization of the “pre-packaged” strategy as well as anticipate to submit volunteer requests for reconstruction under Chapter 11 of the UNITED STATE Bankruptcy Code in the UNITED STATE Bankruptcy Court for the Southern District of Texas, Houston Division in the coming days.
The firm anticipates its procedures to proceed as regular throughout the contemplated court-supervised procedure. On introduction from Chapter 11, ACL will certainly remain to offer clients with affordable as well as trustworthy barge transport solutions.
Mark Knoy, President as well as Chief Executive Officer of American Commercial Lines, stated, “ACL has built a decades-long industry leadership position through key investments in our fleet and a relentless focus on safe and reliable operations. Like many others in our industry, over the last four years ACL has been affected by challenging market conditions, the weather and the closure of key areas of the river system for extended periods of time. We have responded to these challenges by reducing costs and maintaining a high degree of financial discipline. The actions we are now taking will significantly reduce our outstanding debt and the associated costs to service that debt, freeing up our available resources to be fully devoted to competing in today’s market.”
Knoy proceeded, “With this plan, we will have more liquidity to support our operations through economic cycles and weather patterns and additional financial flexibility for fleet management. In addition, we will be able to focus more of our resources on investing in the business to support future growth. We appreciate the support of our financial stakeholders, which we believe represents a statement of confidence in our business and enables us to move through this process on an expedited basis.”
In link with the RSA as well as the anticipated Chapter 11 declaring, ACL has actually gotten a dedication for debtor-in-possession (“DIP”) funding containing a $640 million possession based car loan (“ABL”) as well as a $50 million term car loan from particular of its existing lending institutions. On court authorization, the brand-new funding as well as money produced from the firm’s recurring procedures will certainly be utilized to settle its existing ABL as well as to sustain business throughout the court-supervised procedure.
The firm claims it means to look for to pay vendors completely under regular terms for items as well as solutions supplied on or after the declaring day. Under regards to the pre-packaged strategy, which goes through court authorization, basic unsafe pre-petition cases will certainly additionally be paid completely in the average training course.
Milbank LLP is functioning as the firm’s lawful advice, Greenhill & &Co is functioning as its monetary consultant as well as Alvarez & & Marsal North America, LLC. is functioning as reorganizing consultant.
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