Skip to main content
Business
Jax Daily Record Monday, Dec. 16, 201902:41 PM EST

Acosta says the court approved its bankruptcy reorganization

Share
The Jacksonville-based company expects to emerge from Chapter 11 'in the coming days.'
by: Mark Basch Contributing Writer

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.

Be the first to know the latest breaking news and information that business leaders rely on in this fast-paced changing Northeast Florida economy. Regional business news, trends and statistics needed to grow your business. Key upcoming events you won’t want to miss and much more. Click Here to Grow your Business NOW!

Related Stories

Advertisement