Acosta Inc. on Monday said it has received bankruptcy court approval of its prepackaged reorganization and it “expects to successfully emerge from Chapter 11 in the coming days.”
The Jacksonville-based sales and marketing company, along with several affiliated companies, filed Chapter 11 petitions Dec. 1 in U.S. Bankruptcy Court for the District of Delaware.
The main case was filed under the name Anna Holdings Inc., a holding company formed by The Carlyle Group when the investment firm bought Acosta for $4.75 billion in 2014.
Acosta said in a news release Monday the reorganization plan eliminates about $3 billion in debt.
Acosta said in a memorandum of law filed Saturday in support of confirmation that it began negotiating with lenders to restructure the debt in August and by November, it had approval of a majority of creditors.
The memorandum said it now has unanimous support of all holders of the $3 billion, who will receive stock in exchange for the debt.
“The Plan, and the remarkable consensus it represents, is the product of months of good-faith, arm’s-length negotiations among the Debtors, their first lien lenders, senior noteholders, and other key constituents, who all worked towards a consensual, value-maximizing restructuring,” it said.
Court documents have not specified the creditors who will end up owning Acosta’s stock.
The restructuring includes a rights offering and direct investment to bring $325 million in new capital, “sending a strong message to the Debtors’ employees, vendors, clients, and other business partners that they are well positioned for future success,” the memorandum said.