Xerium Technologies out of the Bankruptcy Depth 0
Xerium Technologies the manufacturer of industrial textiles and roll machines has declared that it has emerged from Chapter 11 and does not need bankruptcy protection anymore. It has finally sources of finances and lower debt load that were unavailable in 2008 which led to its filing of bankruptcy.
The reorganized company saw an exchange of $ 620 million in debt for $ 410 million fresh loans and about $10 million in cash. Along with these transactions, it also received loans of $80 million (20 million in revolving loans and 60 million in term loans) for emergence from chapter 11. The share holders will be given special preference and will receive 17.4% of the freshly generated shares and will also be able to buy additional 10% of the remaining shares.
The board members are pretty optimistic of retaining their stock listing on the New-York stock exchange and are confident of the stronger balance sheet pulling them through and giving an competitive edge.
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