More bad news that effects the industry. Spectrum Brands, the consumer product company that makes Tetra, Marineland and even Rayovac batteries filed for Chapter 11 Bankruptcy on Tuesday as it was unable to make the $25 million interest payment on its debt. This volunteer Chapter 11 filing comes as no surprise. Spectrum ended last year [...]
More bad news that effects the industry. Spectrum Brands, the consumer product company that makes Tetra, Marineland and even Rayovac batteries filed for Chapter 11 Bankruptcy on Tuesday as it was unable to make the $25 million interest payment on its debt.
This volunteer Chapter 11 filing comes as no surprise. Spectrum ended last year with a loss of $938 million, following from 2007s $597 million loss, and was delisted from the NYSE in January.
More info via BizJournals:
“Spectrum said it inked agreements with noteholders that represent 70 percent of the face value of its outstanding bonds to pursue a refinancing that could cut its outstanding debt and put it in a stronger financial position for the future. A refinancing would let the company slash the amount of debt on its balance sheet by $840 million (or about 33 percent), eliminate $95 million in annual cash interest payments for at least each of the next two years and free up additional cash to reinvest in its business.
The refinancing would come through the cancellation of $1.05 billion in existing bond obligations and the issuance of new bonds in an amount equal to 20 percent of the total unpaid principal and interest on existing bonds together with shares of new common stock to be created under the plan. Existing common stock would be extinguished and no distributions will be made to holders of the current equity.”
