Techniplas has entered into an agreement with a group of noteholders to transform its balance sheet while maintaining its high standards for quality and customer service. To facilitate the transition to a more sustainable capital structure, the company and its US subsidiaries have filed for voluntary Chapter 11 protection in the US Bankruptcy Court for the District of Delaware.
The global provider of highly engineered plastic components, by the proposed transaction, will be allowed to emerge with a significant reduction in interest expense and overall debt.
A number of customary motions have been filed by Techniplas, allowing the firm to continue operating upon approval in the ordinary course. For all goods and services received after the filing, the company intends to pay vendors in full under customary terms. The expedited sale process in early summer is expected to be finalized.
