Holley Performance Products Inc. announced Monday that its owner/investors approved a plan to enhance the company's capital structure by converting a majority of the company's debt into equity.
"This is a prudent financial move on the part of our owner/investors,” said Holley Chief Financial Officer Thomas W. Tomlinson. “It tremendously strengthens our company's financial position and provides substantial flexibility to invest in our future. This investment will allow the company to realize its full growth potential and will maximize the value we can return to our investors.
“The actual conversion of debt into equity will be accomplished through a ‘pre-packaged’ bankruptcy filing that will cancel out the old capital structure and formally establish the new one. Customers, suppliers and employees will not be affected."
Tomlinson emphasized that “it will be business as usual at Holley throughout the restructuring process, which we expect to be completed in as few as 45 days."
Chief Executive Officer James D. Wiggins added: "We are very pleased with the transformation that has taken place here at Holley over the last several years. Today Holley is a lean and focused enterprise with strong customer relationships, significant technological capabilities and diversified revenue sources.
“We have established a good track record of profitability and growth in enterprise value. This restructuring represents the culmination of tremendous effort on the part of the team at Holley and we are excited to share news of this successful program with you."
Holley's family of companies includes performance market brands such as Holley, Weiand, Hooker, FlowTech, Earl's, and NOS.