APS Holding Corporation Receives Final Approval of $100 Million Debtor-In-Possession Financing
27 February 1998
APS Holding Corporation Receives Final Approval of $100 Million Debtor-In-Possession Financing
HOUSTON, Feb. 27 -- APS Holding Corporation
announced that on February 26, 1998, the U.S. Bankruptcy Court in the District
of Delaware gave final approval to the $100 million debtor-in-possession (DIP)
financing the Company has arranged with The Chase Manhattan Bank, as agent,
and a consortium of lenders. On February 3, 1998, the Company received
interim approval providing for access to $45 million under the $100 million
DIP facility. This has enabled the Company to operate its business as usual
while it begins its reorganization process.
"With the final approval of the $100 million in additional financing, APS
has the financial resources necessary to continue normal business operations
as it develops and implements a restructuring plan aimed at returning the
Company to profitability," said Bettina M. Whyte, Chief Executive Officer of
APS Holdings. "Our goal is to make APS a stronger and better business partner
for both our vendors and customers."
Ms. Whyte added, "All of us at APS remain committed to providing our
customers with the same level of quality performance and service they have
come to expect and deserve from APS. I want to personally thank our vendors
and customers for their continued support over the past few weeks."
APS filed for a voluntary petition under Chapter 11 of the U.S. Bankruptcy
Code in the District of Delaware on February 2, 1998. The Company has
retained the services of Willkie Farr & Gallagher of New York City to act as
bankruptcy counsel. APS Holding Corporation's Chapter 11 case is being heard
before Judge Peter Walsh in the District of Delaware (Case # 98-197; ref: APS
Holding Corporation).
APS Holding Corporation is a national distributor of Big A(R) brand and
manufacturer branded automotive replacement parts, as well as tools,
equipment, supplies and accessories. It sells to more than 1,650 associated
auto parts stores through 27 distribution centers and operates approximately
270 company-owned Big A(R) stores and 210 Installers' Service Warehouse units.
The Company has annual sales in excess of $800 million. As of December 25,
1997, the Company's total assets and liabilities (book value), on an unaudited
consolidated basis were approximately $560 million and $471 million,
respectively.
This news release contains forward-looking statements that involve risks
and uncertainties. Actual results, events and performance could differ
materially from those contemplated by these forward-looking statements. Among
the factors that could cause actual results, events and performance to differ
materially are risks and uncertainties discussed in this news release and
those detailed from time to time in the Company's filings with Securities and
Exchange Commission, including the Company's annual report on Form 1O-K for
the fiscal-year ended January 25, 1997 and the Company's quarterly report on
Form 10-Q for the quarterly periods ended April 25, July 25 and October 25,
1997, and in the Company's other public reports and statements.
SOURCE APS Holding Corporation