Holley Performance Products Inc. has significantly improved its capital structure and liquidity through a successful voluntary bankruptcy reorganization that became effective on June 22, 2010. As a result, the company has reduced its debt by more than $59 million and obtained new credit arrangements, including a revolving credit facility, which provides the company with substantial flexibility to pursue its growth initiatives.
Originally founded in 1903 by brothers George and Earl Holley, the company provides automotive aftermarket products that enhance vehicle performance through increased horsepower, torque and drivability. Holley products have provided the flow of fuel and air to notable vehicles, including the original Model T, World War II fighter aircraft, factory performance cars of the musclecar era, every NASCAR Cup Series race car and the majority of winning NHRA Pro Stock race cars.
“Holley has emerged with an extraordinarily strong balance sheet, which provides us with the flexibility to reinvest in our business and positions us well for continued growth,” said Tom Tomlinson, Holley's chief executive officer. “We have accomplished a true restructuring in a cooperative, efficient and timely manner, and we are deeply grateful for the support and loyalty we received from our customers, dedicated employees, suppliers, lenders and shareholders. We have an exciting array of new products slated for introduction in the immediate future, and we are dedicated to the execution of our mission to provide the most highly sought-after products in the high-performance automotive aftermarket. With our new balance sheet, we now have the financial strength to create value through long-term sustainable organic growth and appropriate strategic acquisitions while continuing to enhance the reputation and reach of our core stable of brands.”
Holley’s reorganization converted principal and interest associated with its former second lien notes into equity and established new credit facilities with its existing senior lenders. Also during the reorganization, Holley successfully completed the sale of its diesel OEM business.
“The sale of our diesel OEM business yielded excellent value that we are reinvesting in our performance business,” Tomlinson said. “Our team is excited that we are now able to focus 100% of our energy on our very successful high-performance automotive aftermarket business.”
“We initiated Holley’s voluntary bankruptcy case in September 2009 after carefully evaluating the effects of the economic recession and related collapse of the credit markets,” said David G. Elkins, chairman of Holley’s Board of Directors. “Our goal was to significantly reduce Holley’s corporate debt and overall leverage and thereby establish a sustainable, long-term capital structure that would allow the company to carry out its growth and product expansion plans.”