January 23, 2020
4L Holdings has received Court approval to complete its comprehensive financial restructuring plan.
In December 2019, 4L Holdings, which operates as Clover Technologies, announced it had agreed a plan that will equitise all of the company’s approximately $644 million (€579 million) in long-term debt, with the majority of its equity holders and a group of its lenders representing over 67% of its outstanding long-term debt.
The company now confirmed that it has received Court approval of its pre-packaged Chapter 11 Plan of Reorganisation, paving the way for the reorganised company to emerge from Chapter 11 in the coming days.
The confirmed Plan will provide 4L a significantly stronger balance sheet and increased financial flexibility, putting the Company on strong financial footing as it enters its next chapter, 4L Holdings explained.
Clover Imaging Group (CIG) was not part of the financial restructuring process. CIG management and Norwest Equity Partners (NEP acquired the Clover Imaging business unit from 4L Holdings before any Chapter 11 filings were entered.
With the recent acquisition of Teleplan, the company said it will now possess the financial strength and operational capabilities to offer cost-effective, innovative supply chain solutions for customers worldwide, reaching over 120 countries across Europe, the Americas and Asia Pacific.
“We appreciate the dedication and support of our extraordinary employees, customers and partners during this process, as well as the strong support of our lenders and sponsors,” said Dan Perez, CEO of Teleplan and Clover Wireless. “We are also well on our way to integrating Clover Wireless and Teleplan to unlock the customer value promised by the combination. This combination enhances our ability to deliver seamlessly integrated service to customers across the globe, wherever and whenever they need it. The combined organisation will serve as a one-stop shop for customers, providing customised solutions to optimise customers’ reverse supply chain and increase asset values. We are entering 2020 with momentum and our global team is more excited than ever about the opportunities ahead.”
Kirkland & Ellis LLP is serving as 4L’s legal counsel, Jefferies LLC is serving as its financial advisor and Alvarez & Marsal is serving as restructuring advisor. Gibson, Dunn & Crutcher LLP is acting as legal counsel for the ad hoc group of term loan lenders and Greenhill & Co., LLC is acting as its financial advisor.
Categories : World Focus