Truck parts supplier Federal-Mogul Corporation announced it emerged from Chapter 11 on December 27, the Effective Date of its Plan of Reorganization.
“This is an especially exciting time for Federal-Mogul. We begin 2008 with confidence in our future and we are well positioned with our global strategy for sustainable profitable growth,” said Federal-Mogul President and Chief Executive Officer José Maria Alapont.
Federal-Mogul pursuant to the Plan has issued 49.9 million shares of its Class A Common Stock and 50.1 million shares of its Class B Common Stock. The shares of Class A Common Stock were issued to holders of its pre-bankruptcy notes and certain other unsecured claims. Federal-Mogul intends in the near term to have its Class A Common Stock listed. The shares of Class B Common Stock were issued to the Federal-Mogul Asbestos Personal Injury Trust. The Company has under the Plan issued 6.9 million warrants to purchase shares of its Class A Common Stock to holders of its pre-bankruptcy common stock, preferred stock and convertible junior subordinated debentures.
Federal-Mogul has entered into a $3.5 billion exit facility agreement, consisting of a $540 million revolving credit facility and a $2.96 billion term loan credit facility. The company intends to repay today the Tranche A Term Loan and the PIK Notes issued under the Plan, using funds borrowed under the term loan credit facility.