BLUE BIRD COMPLETES IN-COURT RESTRUCTURING PROCESS: NORMAL BUSINESS OPERATIONS CONTINUE AND FULL RECOVERY FOR UNSECURED CREDITORS APPROVED
FORT VALLEY, GA (January 30, 2006) - Blue Bird Corporation, one of North America’s leading manufacturers of buses and motor homes, announced today that the prepackaged restructuring plan filed last week with the United States Bankruptcy Court, District of Nevada was confirmed by the court on Friday and becomes effective today. The completion of the in-court restructuring process allows Blue Bird’s management team and employees to focus their full attention on strengthening business operations, improving financial performance, delivering best-in-class product performance and innovation and providing world-class customer service.
“We are going to take full advantage of the opportunities this restructuring plan provides Blue Bird,” said Jeffry Bust, President and Chief Executive Officer of Blue Bird. “With the new financing this plan provides, the hard work of our employees and the ongoing commitment of our suppliers and distributors, Blue Bird will remain one of the world's leading school bus and motor home manufacturers for many decades to come.”
The approved restructuring plan, which was supported by 93 percent of the company’s lenders, increased Blue Bird’s borrowing availability by $52.5 million through a new and expanded loan agreement and included a debt-for-equity conversion plan that dramatically strengthened the company’s balance sheet. The plan also provides for a full recovery to all of the company’s general unsecured creditors.
The law firm Skadden, Arps, Slate, Meagher & Flom and Kroll Zolfo Cooper (KZC), a firm that specializes in financial and operational restructurings, are advising Blue Bird on its restructuring. Three members of the KZC team also have been appointed to serve on Blue Bird’s Board of Directors. They include Stephen Cooper, who will serve as Chairman of the Board; Leonard LoBiondo; and Robert Bingham.
About Blue Bird:
Blue Bird offers a complete line of Type A, C, and D school buses in a variety of options and configurations. For nearly 80 years, Blue Bird Corporation has continued to set industry standards with its innovative design, manufacturing capabilities and customer service. Blue Bird has an extensive network of distributors and service-parts facilities throughout North America. For more information, please visit www.blue-bird.com.
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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