ANDERSON, IN -- Remy International, Inc. has announced that it has reached agreements with General Motors (GM) with respect to the extension and enhancement of the company's existing supply relationship with GM. The new GM arrangement is an important development in the furtherance of the company's financial restructuring. While certain aspects of the arrangement will be implemented immediately, the agreement will become fully effective upon the consummation of the company's financial restructuring.

"We are extremely pleased to have reached agreement with GM on a comprehensive restructuring of our commercial arrangement. We look forward to a long and mutually beneficial relationship with GM," said John Weber, Remy's chief executive officer.

The company also announced that it has obtained a binding commitment from Barclays Capital, the investment banking division of Barclays Bank PLC, to provide debtor-in-possession (DIP) financing of up to $225 million and $330 million of long-term exit financing, subject to certain closing conditions and documentation.

As a result of finalizing these two critical aspects of its financial restructuring, the company will commence a solicitation of votes on its prepackaged Chapter 11 by mid-August. The terms of its consensual financial restructuring with its noteholders contemplates that all trade creditors, employees and suppliers will continue to be paid in the ordinary course of business.

The terms of the financing commitment will be more fully described in the Solicitation and Disclosure Statement, which will be available on the company's website once the solicitation period has commenced.