BLUE BIRD REACHES FINANCING AGREEMENT WITH LENDERS AND MOVES FORWARD WITH BROAD RESTRUCTURING DEAL
FORT VALLEY, GA (January 27, 2006) - Blue Bird Corporation, one of North America's leading manufacturers of buses and motor homes, announced today that its lenders have agreed to increase the company's borrowing availability by $52.5 million through a new and expanded loan agreement. The company also said that, in cooperation with its lenders, it is moving forward with a debt-for-equity conversion plan that will dramatically strengthen its balance sheet. The restructuring is being achieved through prepackaged court filing in United States Bankruptcy Court, District of Nevada. The company and its lenders expect quick confirmation of the plan, within in a matter of days, which provides a full recovery to the company's general unsecured creditors. The company will continue to operate on a normal basis.
“This news marks a positive step forward in Blue Bird's financial restructuring that will ensure our long-term financial health,” said Jeffry Bust, President and Chief Executive Officer. “Blue Bird has made unequaled improvements in quality, on-time delivery and set a new standard for customer service in the bus industry. With new financing in place, the benefits of those improvements will become even more apparent. The prepackaged court filing is the most efficient method of completing the restructuring. It preserves all supplier claims and protects our customers and employees.”
The company stressed that the financial restructuring process would not interrupt normal business operations, adding that Blue Bird remains committed to meeting its delivery schedules and maintaining the highest standards of quality and service.
“We are very grateful for the flexibility and cooperation shown by our senior lenders over the past few months,” added Mr. Bust. “Their support is a vote of confidence in our business model, our superior products, our excellent management team and our bright prospects.”
About Blue Bird:
Blue Bird is the only dedicated school bus manufacturer in the world and offers a complete line of Type A, C, and D school buses. All Blue Bird buses offer a variety of options and configurations with seating capacities from 10 to 90 passengers. For nearly 80 years, Blue Bird Corporation has continued to set industry standards with its innovative design and manufacturing capabilities. Blue Bird has an extensive network of distributors and service-parts facilities throughout North America . For more information, please visit www.blue-bird.com . You may also download a complete copy of Blue Bird's Disclosure Statement.
Contact:
Fort Valley , Georgia – Mike McCurdy: 478-822-2008
Lafayette , Georgia – Kevin Wood: 706-639-1101
Brantford , Ontario – Tony Kerwin: 519-752-9415
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