Remy Files Prepackaged Plan of Reorganization

Plan Overwhelmingly Approved by Holders of Senior Notes and Senior Subordinated Notes

Debt to be Reduced by $360 Million

Operations to Continue Uninterrupted and Trade Creditors to be Paid in Full

International Operations Not Affected by Filing

ANDERSON, Ind., Oct. 8 -- Remy Worldwide Holdings, Inc. today announced that in response to the overwhelming support received for its previously announced prepackaged plan of reorganization from holders of its 8-5/8% Senior Notes, 9-3/8% Senior Subordinated Notes and 11% Senior Subordinated Notes, the Company has elected to commence voluntary proceedings for itself and its domestic subsidiaries under chapter 11 of the U.S. Bankruptcy Code to seek confirmation of the plan. Specifically, in excess of 99.9% in dollar amount and 98.1% in number of holders of Senior Notes and 100% in dollar amount and 100% in number of holders of Subordinated Notes that voted on the prepackaged plan, voted to approve the plan.

"Today's action enables us to efficiently restructure our debt and create a capital structure that will provide a foundation for future profitability," said John Weber, Remy's Chief Executive Officer. "Over the last several months, we have worked closely with our stakeholders to develop and now implement our plan to position Remy to meet the challenges of our industry."

During the reorganization process, which is expected to conclude within 60 days, Remy will continue normal business operations. The Company anticipates that it will receive court authority to pay employee wages and benefits without interruption and continue to pay trade creditors and suppliers in the ordinary course of business. Remy's international operations are excluded from the filing and will not be directly affected.

  As previously announced, the key elements of the prepackaged plan include:

  -- Repayment of the Company's secured creditors in full.
  -- Raise $85 million in preferred equity through a backstopped rights
       offering to be made to holders of the Company's Senior Notes and
       Senior Subordinated Notes.
  -- Total debt reduction of $360 million through:
     -- Exchange of the Company's $145 million of existing 8-5/8% Senior
          Notes for $100 million of New Third-Lien Notes and $45 million in
          cash (plus an amount of cash equal to the accrued but unpaid
          interest through the filing date (estimated to be $10 million) and
          up to $2 million of new preferred stock in respect of postpetition
          interest).  In addition, these noteholders will receive a $10
          million consent fee for agreeing to the overall restructuring.
     -- Reduction of the Company's unsecured debt obligations by $315
          million by converting the 9-3/8% Senior Subordinated Notes and 11%
          Senior Subordinated Notes into 100% of the common equity of the
          reorganized company.
  -- Cancellation of all of the Company's existing equity interests.

As previously announced, Remy has obtained a binding commitment from Barclays Capital, the investment banking division of Barclays Bank PLC, to provide debtor-in-possession (DIP) financing for up to $225 million and up to $330 million of long-term exit financing.

"This is excellent news for our customers, suppliers and employees worldwide because it paves the way for a promising future for Remy and its long-term viability," said Weber. "We are extremely grateful for the support of all of our constituents and look forward to completing our financial restructuring in the coming months."

The Company filed its voluntary chapter 11 petitions and plan of reorganization in the U.S. Bankruptcy Court for the District of Delaware in Wilmington.

About Remy

Remy International, headquartered in Anderson, Indiana, is a leading manufacturer, remanufacturer and distributor of Delco Remy brand heavy-duty systems and Remy brand starters and alternators, locomotive products and hybrid power technology. The Company also provides a worldwide components core-exchange service for automobiles, light trucks, medium and heavy-duty trucks and other heavy-duty, off-road and industrial applications.