High Voltage Engineering, ASIRobicon emerge from bankruptcy
Wakefield, MA—High Voltage Engineering (HVE) Corp. reports that it and all of its U.S. subsidiaries, including ASIRobicon, have completed restructuring and recapitalization efforts, and emerged from Chapter 11 reorganization.
Wakefield, MA— High Voltage Engineering (HVE) Corp. reports that it and all of its U.S. subsidiaries, including ASIRobicon , have completed restructuring and recapitalization efforts, and emerged from Chapter 11 reorganization only 163 days after initiating its bankruptcy filing.
'We're very pleased that the restructuring process has been completed. We were able to complete this challenging process due to the cooperation and participation of our customers, suppliers, channel partners, bondholders, and employees, all of whom helped reposition the company for long-term success,' says Russell Shade, HVE's CEO. 'HVE is now a considerably stronger company with significantly less debt and well positioned for continued future growth in our core markets.'
HVE says its Third Amended Joint Chapter 11 Plan of Reorganization was confirmed by the U.S. Bankruptcy Court for the District of Massachusetts on July 21, 2004. This plan requires all of HVE's 103/4% Senior Notes, amounting to $155 million plus accrued interest and due in 2004, to be converted into 97% of the firm's post-bankruptcy equity, subject to dilution, while HVE's pre-bankruptcy preferred and common stock have been extinguished. The holders of these pre-bankruptcy classes of stock will receive, in the aggregate, warrants to acquire up to 10% of the new common stock, subject to dilution. The plans also requires all trade suppliers and other unsecured creditors to be paid in full in 90 days.
In addition, as part of its emergence from Chapter 11, HVE obtained $45 million in exit financing from a lending group, which includes some of the same lenders who provided the $25 million debtor in possession financing. The incremental $20 million of proceeds will be used to fund a portion of the distributions to HVE's pre-petition creditors and provide ongoing working capital for its growth plans.
HVE owns and operates a group of technology-based manufacturing businesses that design and manufacture applications-engineered products and services. These firms include ASIRobicon, which consists of ASIRobicon S.p.A. (Milan, Italy) and Robicon Corp. (Pittsburgh, PA); Evans Analytical Group (Sunnyvale, CA), and High Voltage Engineering (Amersfoort, Netherlands).
ASIRobicon, with joint headquarters in Milan and New Kensington, PA, is one of the leading power control and power quality solutions providers to industrial markets worldwide. The firm designs, manufactures, and markets variable frequency drives, motors and generators, power control and power quality systems, and automation systems that incorporate all of these components.
Control Engineering Daily News Desk
Jim Montague, news editor