2023-05-30 08:04:58 ET
- Diebold Nixdorf ( NYSE: DBD ) has entered into restructuring support agreement, in which the debtors will seek approval of a $1.25 billion debtor-in-possession term loan credit facility (the "DIP Facility") as part of the chapter 11 cases.
- The proceeds will be used to repay in full all obligations under the superpriority credit facility; repay in full (or cash collateralize issued letters of credit) the Company's asset-based revolving credit ABL facility, pay costs and reasonable and documented out-of-pocket fees and expenses related to the court-supervised restructuring proceedings and fund the working capital needs and expenditures of the debtors and their non-debtor affiliates during the pendency of the court supervised restructuring proceedings.
- Holders of the Company's first lien term loan or first lien notes that wish to become a lender under the DIP Facility and that execute the restructuring support agreement prior to 11:59 p.m., New York City time, on June 2, 2023 will be eligible to receive a participation premium of their pro rata portion of 10% of the new common shares of the Company that will be available for distribution to creditors under the plans.
- The restructuring is expected to significantly reduce debt and leverage levels and provide substantial additional liquidity to support seamless ongoing operations and establish a long-term, sustainable capital structure for the Company.
- Under the restructuring support agreement, the consenting creditors have agreed to support restructuring transactions that would result in the discharge of a significant portion of existing funded debt and certain of its subsidiaries.
- The Company's outstanding common shares would be cancelled pursuant to the restructuring transactions, and holders thereof would not receive any recovery.
- The Company expects the restructuring transactions to be consummated in the third quarter of 2023.
- Source: Press Release
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Diebold Nixdorf enters into restructuring support agreement