Holley Performance Products Inc., Bowling Green, Ky., has announced that it has significantly improved its capital structure and liquidity through a successful voluntary bankruptcy reorganization, effective June 22.
As a result of the reorganization, the company reduced its debt by more than $59 million and obtained new credit arrangements including a revolving credit facility that provides Holley with substantial flexibility to pursue its growth initiatives, according to a press release.
“Holley has emerged with an extraordinarily strong balance sheet, which provides us with the flexibility to reinvest in our business and positions us well for continued growth,” said Tom Tomlinson, Holley CEO. “We have accomplished a true restructuring in a cooperative, efficient and timely manner and we are deeply grateful for the support and loyalty we received from our customers, dedicated employees, suppliers, lenders and shareholders. With our new balance sheet, we now have the financial strength to create value through long-term sustainable organic growth and appropriate strategic acquisitions while continuing to enhance the reputation and reach of our core stable of brands.”
Holley is a designer, manufacturer and distributor of high-performance automotive products including carburetors, fuel pumps, fuel injection systems, nitrous oxide injection systems, superchargers, exhaust headers, mufflers, and fluid transfer products.
Holley’s reorganization converted principal and interest associated with its former second lien notes into equity and established new credit facilities with its existing senior lenders, according to the release. Also during the reorganization, Holley successfully completed the sale of its diesel OEM business.
“The sale of our diesel OEM business yielded excellent value that we are reinvesting in our performance business,” Tomlinson said. “Our team is excited that we are now able to focus 100-percent of our energy on our very successful high-performance automotive aftermarket business.”
Holley was originally founded in 1903 by brothers George and Earl Holley, and the company’s products have provided the flow of fuel and air to notable vehicles including the original Model T, World War II fighter aircraft, factory performance cars of the muscle car era, every NASCAR Cup Series race car and a majority of winning NHRA Pro Stock race cars.
“We initiated Holley’s voluntary bankruptcy case in September 2009 after carefully evaluating the effects of the economic recession and related collapse of the credit markets. Our goal was to significantly reduce Holley’s corporate debt and overall leverage, and thereby establish a sustainable, long-term capital structure that would allow the company to carry out its growth and product expansion plans,” said David G. Elkins, chairman of Holley’s board of directors. “We are extremely pleased with the outcome, having reduced debt by over $59 million. Thanks to the efforts of our senior management team and other employees and to the cooperation we received from our stakeholders, suppliers and customers, Holley has emerged from this process as a financially strong company that is well-positioned for future growth and success.”