Aventine Renewable Energy Holdings, Inc. Enters Into a Significant Restructuring Transaction With Members of Its Lender Group
20 Août 2012 - 11:40PM
Aventine Renewable Energy Holdings, Inc. (OTCBB:AVRW), today
announced that it has entered into a Restructuring Agreement with
100% of its term loan lenders. Under the terms of this agreement
the Company would convert the majority of its outstanding term loan
debt into newly issued common equity of the Company, representing,
on a fully diluted basis, approximately 92.5% of the issued and
outstanding common stock after the issuance (subject to downward
adjustment and/or dilution as described in the agreement).
The Company's Board of Directors unanimously approved entering
into the agreement and holders of approximately 60% of its common
stock have also approved the agreement. If completed, the
Company expects the restructuring to reduce the Company's existing
debt by approximately $135 million and significantly lower the
Company's annual cash interest expense. As part of the
transactions, the term loan lenders have also agreed, subject to
receipt of internal credit approvals, to provide $30 million in the
form of additional indebtedness to further improve the Company's
liquidity.
With the commitment of all the requisite stakeholders the
transactions are expected to be consummated without any court
approvals. If completed, the Company expects that
unsecured creditors would not be affected by the restructuring and
trade creditors would continue to receive payments in the ordinary
course. The transactions are targeted to close by the
end of the 3rd quarter of 2012.
Completion of the transactions contemplated by the Restructuring
Agreement is subject to certain customary conditions and approvals
as well as the finalization of definitive documentation.
"The Company would like to thank its lenders and significant
stakeholders for supporting its business and operations. These
are difficult times for the industry and the consummation of these
transactions is expected to result in a much stronger balance sheet
for the Company," said John Castle, Aventine's Chief Executive
Officer.
The securities of the Company to be issued and/or offered and
sold to the term loan lenders in reliance on Section 4(a)(2) and/or
Rule 506 of Regulation D of the Securities Act of 1933, as amended
(the "Securities Act"), have not been registered under the
Securities Act and may not be offered or sold in the United States
absent registration or an applicable exemption from the
registration requirements. This press release does not
constitute an offer to sell or a solicitation of an offer to buy
any securities nor shall there be any sale of these securities in
any state or jurisdiction in which such an offer, solicitation or
sale would be unlawful prior to registration or qualification under
the securities laws of any such jurisdiction.
About Aventine Renewable Energy
Aventine is a leading producer of ethanol. Through our
production facilities, we market and distribute ethanol to many of
the leading energy companies in the U.S. In addition to producing
ethanol, our facilities also produce several by-products, such as
distillers grain, corn gluten meal and feed, corn germ and grain
distillers dried yeast, which generate revenue and allow us to help
offset a significant portion of our corn costs.
Forward Looking Statements
Certain information included in this press release may be deemed
to be "forward looking statements" within the meaning of Section
27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. In some cases, you can identify these
statements by forward-looking words such as "may," "might," "will,"
"should," "expect," "plan," "anticipate," "believe," "estimate,"
"predict," "potential" or "continue," and the negatives of these
terms and other comparable terminology. These forward-looking
statements, which are subject to known and unknown risks,
uncertainties and assumptions about us, include the anticipated
benefits of the Restructuring Agreement and the related
transactions, expected timing of the completion of the transactions
contemplated by the Restructuring Agreement and other aspects of
the proposed restructuring, and may include projections of our
future financial performance based on our growth strategies and
anticipated trends in our business. These statements are only
predictions based on our current expectations and projections about
future events. There are important factors that could cause our
actual results, level of activity, performance or achievements to
differ materially from the results, level of activity, performance
or achievements expressed or implied by the forward-looking
statements.
Some of the factors that may cause Aventine's actual results,
developments and business decisions to differ materially from those
contemplated by such forward looking statements include our ability
to reach agreement with our stakeholders on, and successfully
complete negotiations with respect to, definitive documents
effectuating the transactions contemplated by the Restructuring
Agreement and to satisfy all the conditions precedent to the
consummation of all the transactions contemplated by the
Restructuring Agreement in a timely manner, or at all, our ability
to obtain and maintain normal terms with vendors and service
providers, our ability to estimate allowed general unsecured
claims, unliquidated and contingent claims and future distributions
of securities and allocations of securities among various
categories of claim holders, our ability to maintain contracts that
are critical to our operations, our ability to attract and retain
customers, our ability to fund and execute our business plan and
any ethanol plant expansion or completion projects, our ability to
receive or renew permits to construct or commence operations of our
proposed capacity additions in a timely manner, or at all, laws,
tariffs, trade or other controls or enforcement practices
applicable to our operations, changes in weather and general
economic conditions, overcapacity within the ethanol, biodiesel and
petroleum refining industries, availability and costs of products
and raw materials, particularly corn, coal and natural gas and the
subsequent impact on margins, our ability to raise additional
capital and secure additional financing, our ability to service our
debt or comply with our debt covenants, our ability to attract,
motivate and retain key employees, liability resulting from actual
or potential future litigation or the outcome of any litigation
with respect to our auction rate securities or otherwise, and plant
shutdowns or disruptions. We disclaim any obligation or undertaking
to disseminate any updates or revisions to any forward looking
statements contained in this release or to reflect any change in
our expectations after the date of this release or any change in
events, conditions or circumstances on which any statement is based
except as required by law.
CONTACT: Aventine Renewable Energy Holdings, Inc.
Calvin Stewart
Chief Financial Officer
Ph: 214-451-6766
Fax: 214-451-6799
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