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May 9, 2008 |
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SIRVA INC: Court Approves Pre-Packaged Plan of Reorganization The Honorable James M. Peck of the U.S. Bankruptcy Court for the Southern District of New York approved Sirva Inc. and its debtor-affiliates' pre-packaged Chapter 11 Plan of Reorganization, clearing the way for SIRVA and its subsidiaries to emerge from Chapter 11 in short order. "As a result of our financial restructuring, SIRVA and all of our subsidiaries, including Allied and northAmerican, now have a significantly stronger financial foundation," Robert W. Tieken, chief executive officer, said. "The balance sheet recapitalization we undertook has reduced the Company's debt and interest expense, enhancing our ability to compete in the moving and relocation markets and positioning SIRVA for long-term success." On Feb. 5, 2008, SIRVA and most of its domestic subsidiaries filed voluntary Chapter 11 petitions. The court's confirmation of the Plan, which had already received overwhelming support from the the Debtors' secured lenders, allows SIRVA to implement its restructuring and recapitalization. Specifically, the Plan reduces SIRVA's outstanding bank debt by roughly US$200 million and annual cash interest expense by approximately US$40 million. At the time of the Chapter 11 filing, SIRVA entered into a US$150 million debtor-in-possession financing facility with members of its pre-petition lender group. Upon emergence, the DIP financing facility will convert into a US$215 million senior secured credit facility to fund ongoing operations and borrowings. Once its Plan becomes effective, SIRVA will become a private company, and its stock will no longer be publicly traded. Headquartered in Westmont, Illinois, SIRVA Inc. (Pink Sheets : SIRV.PK) -- http://www.sirva.com/ -- is a provider of relocation solutions to a well-established and diverse customer base. The company handles all aspects of relocation, including home purchase and home sale services, household goods moving, mortgage services and home closing and settlement services. SIRVA conducts more than 300,000 relocations per year, transferring corporate and government employees along with individual consumers. SIRVA's brands include Allied, Allied International, Allied Pickfords, Allied Special Products, DJK Residential, Global, northAmerican, northAmerican International, Pickfords, SIRVA Mortgage, SIRVA Relocation and SIRVA Settlement. The company has operations in Costa Rica. The company and 61 of its affiliates filed separate petitions for Chapter 11 protection on Feb. 5, 2008 (Bankr. S.D.N.Y. Case No. 08-10433). Marc Kieselstein, Esq. at Kirkland & Ellis, L.L.P. is representing the Debtor. An official Committee of Unsecured Creditors has been appointed in this case. When the Debtors filed for bankruptcy, it reported total assets of US$924,457,299 and total debts of US$1,232,566,813 for the quarter ended Sept. 30, 2007. (Sirva Inc. Bankruptcy News; Bankruptcy Creditors' Services Inc. http://bankrupt.com/newsstand/ or 215/945-7000) |
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