NEW YORK — Holley Performance Products Inc. announced that it has significantly improved its capital structure and liquidity through a successful voluntary bankruptcy reorganization that became effective on June 22, 2010. As a result of the reorganization, the company reduced its debt by over $59 million and obtained new credit arrangements, including a revolving credit facility that provides the company with substantial flexibility to pursue its growth initiatives.
Holley is a leading designer, manufacturer and distributor of a diversified line of high performance automotive products including carburetors, fuel pumps, fuel injection systems, nitrous oxide injection systems, superchargers, exhaust headers, mufflers and fluid transfer products.
Holley was originally founded in 1903 by brothers George and Earl Holley and has continuously provided iconic automotive aftermarket products that enhance vehicle performance through increased horsepower, torque and drivability. Holley products have provided the flow of fuel and air to notable vehicles including the original Model T, World War II fighter aircraft, the hottest factory performance cars of the muscle car era, every NASCAR Cup Series race car and the majority of winning NHRA Pro Stock race
cars.
"Holley has emerged with an extraordinarily strong balance sheet which provides us with the flexibility to reinvest in our business and positions us well for continued growth. We have accomplished a true restructuring in a cooperative, efficient and timely manner, and we are deeply grateful for the support and loyalty we received from our customers, dedicated employees, suppliers, lenders and shareholders," said Chief Executive Officer Tom Tomlinson. "We have an exciting array of new products slated for introduction in the immediate future, and we are dedicated to the execution of our mission to provide the most highly sought after products in the high performance automotive aftermarket. With our new balance sheet, we now have the financial strength to create value through long-term sustainable organic growth and appropriate strategic acquisitions while continuing to enhance the reputation and reach of our core stable of brands."
Holley’s reorganization converted principal and interest associated with its former second lien notes into equity and established new credit facilities with its existing senior lenders.
Also during the reorganization, Holley successfully completed the sale of its diesel OEM business.
"The sale of our diesel OEM business yielded excellent value that we are reinvesting in our performance business. Our team is excited that we are now able to focus 100 percent of our energy on our very successful high performance automotive aftermarket business," Tomlinson said.
