Techniplas To Strengthen Liquidity and Balance Sheet with No

|May 6|magazine8 min read

NASHOTAH, Wis., May 6, 2020 /PRNewswire/ -- Techniplas, LLC (the "Company"), a provider of highly engineered technical solutions to the automotive, transportation, and industrial markets, today announced that it has entered into an agreement with a group of noteholders holding approximately 95% of its senior notes that would position the Company to transform its balance sheet while maintaining its high standards for quality and customer service. To facilitate the Company's sale process and transition to a more sustainable capital structure, the Company and its U.S. subsidiaries have filed for voluntary Chapter 11 protection in the U.S. Bankruptcy Court for the District of Delaware.

The Chapter 11 filings and restructuring process do not include the Company's subsidiaries outside of the United States; Techniplas's international customers and operations, as well as the majority of those in the U.S., will not be impacted by this process.

Ali El-Haj, Techniplas's Chief Executive Officer, stated, "We are proud of the confidence represented by the agreement with our noteholders. This solution charts a positive path forward for the Company, despite the challenges presented by the global COVID-19 pandemic. We are confident the proposed transaction will make us a stronger partner and employer, better able to focus our U.S. footprint, operations, and utilization. We look forward to emerging from this process swiftly with an improved financial structure and balance sheet. Backed by marquee institutions who know Techniplas and our management team well, we are laser-focused on sustainable growth while we continue to provide the same high-quality products and support our customers associate with Techniplas."

The proposed transaction would allow Techniplas to emerge with a significant reduction in overall debt and interest expense. The Company has also entered into an agreement through which certain of its noteholders and Bank of America, N.A., as agent and lender under the Company's ABL credit facility, will provide additional debtor-in-possession financing to fund the process, including expenses, and Techniplas operations, including current growth initiatives.

As part of the reorganization process, the Company has filed a number of customary motions that will allow the Company to continue operating in the ordinary course upon approval, which is expected in the first few days of the process. Techniplas intends to pay vendors in full under customary terms for all goods and services received after the filing. The expedited sale process is expected to be completed in early summer.

Further information about the case can be found at https://dm.epiq11.com/Techniplas or by calling (855) 917-3467 in the U.S. and Canada or (503) 520-4469 outside the U.S.

Techniplas is represented by White & Case LLP, FTI Consulting, and Miller Buckfire. The ad hoc group of noteholders is represented by Arnold & Porter Kaye Scholer LLP and Houlihan Lokey.

About Techniplas

Techniplas (www.techniplas.com) is a global provider of highly engineered plastic components, primarily for the automotive sector as well as industrial, consumer, medical and other markets. The Company's products align with industry trends, including vehicle lightweighting and electrification and an increasing focus on comfort and safety. Techniplas serves global customers and platforms with a focus on technology expertise and design and engineering collaboration with customers. Techniplas maintains long-term relationships with many of the world's leading automotive OEMs.

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SOURCE Techniplas, LLC