NEW YORK–(BUSINESS WIRE)–AMF Bowling Worldwide, Inc. and certain of its affiliates (“AMF”) filed
a new chapter 11 plan of reorganization and disclosure statement today
sponsored by Strike Holdings LLC (known as “Bowlmor”), and certain of
AMF’s second lien lenders, including Cerberus Series Four Holdings, LLC
(“Cerberus”), and Credit Suisse.
The plan provides that AMF will be reorganized and combined with Bowlmor
to form a company that will be known as Bowlmor AMF, which would be the
largest operator of bowling centers in the world with 7,500 employees,
276 bowling centers and combined annual revenues of approximately $450
million. The plan provides that AMF’s second lien lenders will convert
their debt into equity in Bowlmor AMF, so that Bowlmor AMF will be owned
jointly by the financial institutions that hold AMF’s second lien debt
and by equity holders in Bowlmor. Credit Suisse will provide a term loan
facility in the principal amount of $230 million, and a revolving loan
facility in the principal amount of $30 million. The largest holders of
AMF’s existing second lien debt have expressed their confidence in the
new company by providing $50 million of backstop financing, which will
be used to provide working capital for Bowlmor AMF and to pay cash
distributions in varying amounts to AMF’s other creditors. In addition
to second lien lenders, the plan has the support of the Official
Committee of Unsecured Creditors. AMF’s first lien lenders will receive
payment in full, in cash, of principal, interest at the non-default
rate, and their fees.
“The prospect of combining Bowlmor’s proven approach to operations and
marketing with the AMF brand, its large number of locations and national
market penetration represents an exciting opportunity for both
companies,” said Bowlmor’s Founder and CEO Tom Shannon, who will serve
as the Chairman, CEO and President of the combined company. “The
combination will not only result in a strong company but also the best
bowling experience possible. We are committed to making Bowlmor AMF a
truly great company for the bowling public, our partners and our
employees.”
Joining Shannon on Bowlmor AMF’s executive team will be Bowlmor’s
President and Chief Financial Officer, Brett Parker, who will become
Vice Chairman, CFO and EVP of Bowlmor AMF. The new Bowlmor AMF will be
jointly owned by AMF’s existing second lien lenders, who will hold
77.53%, and Shannon and Parker, who will collectively hold 22.47% of the
new company.
Steve Satterwhite, AMF’s Chief Operating Officer and Chief Financial
Officer said, “AMF’s operational and financial performance through our
reorganization process has set the stage for a successful emergence from
bankruptcy. It is thanks to the dedication and hard work of AMF’s
employees and management team that we recently posted the best same
store sales growth since 2007 and the highest profitability since 2009,
achieving impressive results despite the challenges of the restructuring
and economic conditions.”
The next step in this process is a hearing set for May 23, 2013 at which
the Bankruptcy Court in Virginia overseeing AMF’s chapter 11 case will
be asked to approve the disclosure statement so that the plan can be
sent to AMF’s creditors for approval. Assuming that the Bankruptcy Court
approves the disclosure statement on May 23, the plan will be sent out
for a vote and the Bankruptcy Court will schedule a hearing to confirm
the plan. Pending court approval, AMF could emerge from bankruptcy and
combine with Bowlmor by the end of June.
More information about AMF’s restructuring is available at http://bit.ly/1t4joHt.
Court filings and claims information are available at www.kccllc.net/AMF.
Forward Looking Statements: Certain statements in this press
release constitute “forward-looking statements.” All statements other
than statements of historical facts included herein, including those
regarding our future financial position and results, business strategy,
plans, and objectives of management for future operations, are
forward-looking statements. Such forward-looking statements involve
known and unknown risks, uncertainties, and other factors which may
cause our actual results, performance or achievements, or industry
results, to be materially different from any future results,
performance, or achievements expressed or implied by such
forward-looking statements. Such forward-looking statements are based on
numerous assumptions regarding our present and future business
strategies and the environment in which we will operate in the future.
Although we believe that the expectations reflected in the
forward-looking statements are reasonable at the time made, we cannot
guarantee future results, levels of activity, performance, or
achievements.
About Bowlmor: With headquarters in New York City, Bowlmor
operates upscale bowling and entertainment venues that specialize in
corporate and team building events, private parties, fundraisers, and
social events, as well as offer walk-in retail bowling. Bowlmor creates
imaginative, exciting, and memorable entertainment that features
high-end, stylish bowling in a chic, modern lounge setting. Bowlmor
locations have often earned several hundred thousand dollars per lane
per year making it one of the best performing bowling facility operators
in North America.
About AMF Bowling: AMF is the world’s largest owner and operator
of bowling centers. Since the introduction of the automated pinspotter
in 1946, AMF has been a leader in the bowling industry. More than 20
million bowlers per year make AMF their bowling destination of choice.
AMF is where America goes bowling.
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