Obtains Interim Approval to Access up to $275 Million of DIP Financing
Court Approves Payments to Trade Creditors in Ordinary Course
Global Operations Continue in Normal Course with Customers, Vendors, Suppliers, and Employees
San Jose, CA – Lumileds Holding B.V. (“Lumileds” or the “Company”), a global leader in innovative lighting solutions, announced today that it has received interim approval from the U.S. Bankruptcy Court for the Southern District of New York (the “Court”) for all the first day motions related to its prepackaged Chapter 11 filed on August 29, 2022. The approved motions will immediately solidify the Company’s liquidity position and maintain normal course operations throughout the financial restructuring.
As part of these motions, the Court today granted Lumileds access to up to $275 million in debtor-in-possession (“DIP”) financing that, together with the Company’s available cash reserves and cash provided by operations, will provide sufficient liquidity for Lumileds to continue meeting its ongoing obligations in the ordinary course. Lumileds will continue to seamlessly deliver products and services to customers. Lumileds’ vendors and suppliers will not be impaired and will be paid for all valid amounts owed as they come due. Employees will also continue to receive their usual wages and benefits without interruption.
“The approval of our first day motions is an important milestone in our recapitalization and financial restructuring efforts, which will allow us to operate in the normal course as we de-leverage our balance sheet and further position Lumileds to capture opportunities in the market and accelerate our growth,” said Matt Roney, CEO of Lumileds. “We remain focused on driving innovation and delivering never before possible solutions for lighting, safety, and well-being. I want to reiterate my thanks to our customers, vendors, suppliers, employees, and lenders for their continued support as we move through this process on an expedited timeline.”
As previously announced, Lumileds has received support from the requisite lenders on the terms of a comprehensive financial restructuring that would significantly de-leverage and strengthen its balance sheet by over $1.3 billion, accelerate Lumileds’ growth, and enable further investment in innovation to pursue additional strategic opportunities. The narrowly focused prepackaged Chapter 11 filing is limited to Lumileds’ U.S. and Dutch entities and the Company expects to emerge from the Chapter 11 process within approximately sixty days.
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; Paul, Weiss, Rifkind, Wharton & Garrison, LLP, and Latham & Watkins LLP are acting as corporate and restructuring counsel to Lumileds, and AlixPartners, LLP, 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 group’s legal counsel.
Lumileds is a global leader in OEM and aftermarket automotive lighting and accessories, camera flash for mobile devices, MicroLED, and light sources for general illumination, horticulture, and human-centric lighting. Our approximately 7,000 employees operate in over 30 countries and partner with our customers to deliver never before possible solutions for lighting, safety, and well-being. To learn more about our company and solution portfolios, please visit https://lumileds.com.
For further information, please contact:
FGS Global for Lumileds
Kal Goldberg/Frances Jeter