UCI International has filed a motion with the United States Bankruptcy Court for the District of Delaware seeking authority to enter into a settlement agreement between the company, the Official Committee of Unsecured Creditors and the Ad Hoc Committee of Senior Noteholders and Rank Group Limited. The agreement releases Rank and its affiliates from liability for all potential causes of action in exchange for an affiliate of Rank assuming the company’s three defined benefit pension plans and providing certain other non-cash consideration to the company. The settlement agreement is supported by all major creditor constituencies in the case.
The motion seeking approval of the settlement agreement, together with a separate agreement with the Pension Benefit Guaranty Corp. to facilitate the transfer of the pension plans to Rank, are scheduled to be heard by the bankruptcy court on Dec. 6. The settlement is consistent with the Rank Contribution Election provided for in the Company’s plan of reorganization. A confirmation hearing on the Plan also is scheduled for Dec. 6.
“We are pleased that, after extensive negotiations, all parties have been able to reach a settlement that will eliminate costly litigation and provides considerable benefit to UCI,” said Brian Whittman, UCI’s chief restructuring officer. “The settlement improves the recovery for all of our creditors and further positions UCI for a successful reorganization.”
UCI also announced that Michael Klein, a veteran industry leader, has agreed to serve as chairman of the board after its emergence from bankruptcy. Klein has previously served as CEO of Armored Auto Group, IDQ and Murray’s Discount Auto Stores and is currently chairman of the board of the Auto Care Association. Klein said, “I am excited to have the opportunity to join a revitalized UCI. The company has great people and products and the restructuring positions UCI to provide even better products and service to its customers.”
The remaining members of the post-emergence board are expected to be named later this month and Greg Noethlich and Brett McBrayer will continue to lead the company.
UCI’s principal operating subsidiaries include Airtex Products L.P., ASC Industries Inc. and Champion Laboratories Inc. For more information on the company’s chapter 11 reorganization, visit cases.gcginc.com/uci/ or call 855-907-3238.
