Xerium Technologies announced their emergence from Chapter 11 bankruptcy protection this Tuesday, with a smaller debt load and a cache of new financing options.
The Raleigh-based company announced that debtholders exchanged approximately $620 million of debt for $410 million in new loans, $10 million in cash, and approximately 82.6 percent of common stock in the reorganized company.
The company also reported the acquisition of revolving loans of up to $20 million and a term loan of $60 million.
Shareholders from before the bankruptcy have been promised 17.4 percent of the newly issued shares, around a 20-to-1 reverse split. They will also receive warrants to purchase up to 10 percent of outstanding shares.
There are now seven board of directors members, five of whom were nominated by lenders. The company expects to retain its stock listing on the New York Stock Exchange.
Contact the Milwaukee personal bankruptcy attorneys of the DeLadurantey Law Office, LLC, at 414-377-0518 to discuss your financial future.