Nexpak Files for Chapter 11 in Restructuring Plan21 Jul, 2004 By: Jessica Wolf
DVD, CD and videogame packaging supplier NexPak announced a prearranged Chapter 11 filing, part of a restructuring program for the company that will include a change in ownership.
“This is an important and necessary step for NexPak,” said Vincent Leesberg, NexPak's CEO, in announcing the Chapter 11 filing. “This filing represents the final step in our journey to reduce and restructure our debt, while enhancing our ability to invest in our products. Recasting our balance sheet provides us with the added flexibility we need to remain a leader in our ever-changing marketplace. With the support of our key stakeholders, NexPak also filed on July 18 a plan of reorganization. We plan on emerging from bankruptcy in a timely manner with sufficient ongoing liquidity and a significantly reduced debt load.”
NexPak lenders have agreed to convert $97.9 million in debt into equity, reducing the company's debt by 60 percent. All remaining debt will be restructured, and lenders will provide $37.7 million in funding to reinvest in current operations, the company reported.