CARY, N.C.–Generation Brands, the parent to a number of lighting and ceiling fan companies including Murray Feiss, Sea Gull and Monte Carlo Fan, has filed for bankruptcy.
The pre-packaged plan lays out a quick trip through bankruptcy court with all parties agreeing to the reorganization prior to its filing, according to a statement from Generation Brands, which says it expects to emerge by the end of January 2010.
Generation’s principle owner, Quad-C Management, agreed to additional financing of $20 million under the plan, which will eliminate some $150 million in debt. Interim debtor-in-possession financing of $20 million has also been secured.
Upon its emergence, Generation said it will have $30 million in liquidity and no debt payments due for four years. It said all suppliers and other debt holders will be paid in full under the plan.
“Our operating businesses have continued to perform well during one of the worst housing downturns in memory,” said T. Tracy Bilbrough, president and chief executive officer. “Our capital structure has been the issue, not our operations.
“We appreciate the continuing support of Quad-C and the confidence in our business demonstrated by all of our key constituents,” said Bilbrough. “We believe that the increased financial flexibility and liquidity that this restructuring provides will enable us to become an even stronger company.”