Court Approves Nearly Unanimous Plan to Deleverage and Strengthen Balance Sheet while Enhancing Liquidity through a Significant New Money Investment, Positioning Company for Long-Term Growth
Company Plans to Emerge Week of October 31, 2022
San Jose, CA – October 14, 2022 – Lumileds Holding B.V. (“Lumileds” or the “Company”), a global leader in innovative lighting solutions, announced today that the United States Bankruptcy Court for the Southern District of New York has confirmed the Company’s Plan of Reorganization (the “Plan”). Lumileds plans to emerge from the chapter 11 process (“Chapter 11”) the week of October 31 following the satisfaction of certain administrative items before the Plan becomes effective.
Under the terms of the Plan, Lumileds will complete a comprehensive restructuring transaction which will reduce the Company’s funded debt by approximately $1.4 billion, provide capital to accelerate Lumileds’ growth, and enable further investment in innovation that will allow the Company to pursue additional strategic opportunities.
Prior to commencing their Chapter 11, the Company announced the execution of a Restructuring Support Agreement (the “RSA”), whereby the Company obtained the necessary support from its lenders to confirm the Plan. The Company’s narrowly focused prepackaged Chapter 11 filing was then commenced on August 29, 2022 and was limited to involving only Lumileds U.S. and Dutch Lumileds. Following the solicitation period, approximately 92% of Lumileds’ first lien lenders voted in favor of the Plan and over 99% of the first lien lenders ultimately executed the RSA. Under the terms of the Plan, the pre-petition first lien lenders provided the Company with commitments for up to $275 million in new capital, first as part of the DIP Facility which was then converted into a five-year exit facility.
“Throughout this process we continue to maintain our sharp focus on driving innovation and developing new products and solutions for our customers, and we are excited by the opportunities ahead for Lumileds,” said Matt Roney, CEO of Lumileds. “With the confirmation of our plan of reorganization, we will implement our financial restructuring to deleverage our balance sheet, significantly increase our liquidity and even better position ourselves for long-term growth and innovation. We thank all our stakeholders for their ongoing support and confidence in our market-leading position in the specialty lighting industry, which has allowed us to reach this significant milestone so quickly and on schedule.”
For more information on Lumileds’ restructuring, including access to Court documents, please visit https://dm.epiq11.com/Lumileds or contact Epiq Corporate Restructuring, LLC, the Company’s noticing and claims agent at +1 800-497-9116 (for toll-free domestic calls) and +1 503-520-4495 (for tolled international calls) or email [email protected].
Evercore is acting as investment banker for the Company, Latham & Watkins is acting as restructuring counsel to Lumileds and AlixPartners, LLP is acting as financial advisor. PJT Partners is acting as financial advisor for an ad hoc group of Lumileds’ lenders, and Gibson, Dunn & Crutcher LLP is acting as the ad hoc group’s legal counsel.
FGS Global for Lumileds
Kal Goldberg/Frances Jeter