ATLANTA--(BUSINESS WIRE)--Jun. 25, 2009--
Spectrum Brands today announced that the Honorable Judge King of the
U.S. Bankruptcy Court for the Western District of Texas, San Antonio
Division, has approved the company’s Plan of Reorganization and will
enter a confirmation order upon submission. Following entry of the
confirmation order, the plan will become effective -— and the company
will exit bankruptcy protection -— as soon as all closing conditions to
the Plan, including the closing of the company’s exit financing, have
been met. Spectrum Brands expects to emerge from Chapter 11 in August.
Kent Hussey, Chief Executive Officer of Spectrum Brands, said: “We are
pleased that our Plan of Reorganization has been approved by the Court,
a key milestone in our financial restructuring process, and one that
sets the stage for our exit from bankruptcy in August. When we emerge,
we will have reduced our subordinated debt by $840 million and
eliminated approximately $60 million of annual cash interest expenses
for at least each of the next two years. We will emerge with a stronger
balance sheet that will better position us to maintain and strengthen
our current platform and to pursue opportunities to grow our company.”
On February 3, 2009, Spectrum Brands and its U.S. subsidiaries filed
voluntary petitions for reorganization under Chapter 11 in the U.S.
Bankruptcy Court for the Western District of Texas, San Antonio
Division. The main case number is 09-50455. The Company’s non-U.S.
operations, which are legally separate, are not included in the Chapter
11 proceedings.
Certain matters discussed in this news release, with the exception of
historical matters, may be forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995. These
statements are subject to a number of risks and uncertainties that could
cause results to differ materially from those anticipated as of the date
of this release. Actual results may differ materially as a result
of (1) risks that the bankruptcy cases disrupt current plans and
operations; (2) risks that the Company's businesses could suffer from
the loss of key customers, suppliers or personnel during the pendency of
the bankruptcy cases, (3) risks that the Company will be able to
maintain sufficient liquidity for the pendency of the bankruptcy cases,
(4) risks that the Company will be unable to successfully close the exit
financing, (5) risks that changes and developments in external
competitive market factors, such as introduction of new product features
or technological developments, development of new competitors or
competitive brands or competitive promotional activity or spending, (6)
changes in consumer demand for the various types of products Spectrum
Brands offers, (7) unfavorable developments in the global credit
markets, (8) the impact of overall economic conditions on consumer
spending, (9) fluctuations in commodities prices, the costs or
availability of raw materials or terms and conditions available from
suppliers, (10) changes in the general economic conditions in countries
and regions where Spectrum Brands does business, such as stock market
prices, interest rates, currency exchange rates, inflation and consumer
spending, (11) the Company’s ability to successfully implement
manufacturing, distribution and other cost efficiencies and to continue
to benefit from its cost-cutting initiatives, (12) unfavorable weather
conditions and various other risks and uncertainties, including those
discussed herein and those set forth in Spectrum Brands’ securities
filings, including the most recently filed Annual Report on Form 10-K or
Quarterly Report on Form 10-Q. Spectrum Brands also cautions the
reader that its estimates of trends, market share, retail consumption of
its products and reasons for changes in such consumption are based
solely on limited data available to Spectrum Brands and management’s
reasonable assumptions about market conditions, and consequently may be
inaccurate, or may not reflect significant segments of the retail market.
The Company also cautions the reader that undue reliance should not
be placed on any forward-looking statements, which speak only as of the
date of this release. Spectrum Brands undertakes no duty or
responsibility to update any of these forward-looking statements to
reflect events or circumstances after the date of this release or to
reflect actual outcomes.
About Spectrum Brands, Inc.
Spectrum Brands is a global consumer products company and a leading
supplier of consumer Batteries, specialty pet supplies, shaving and
grooming products, household and lawn insect and pest control products,
personal care products and portable lighting. Spectrum Brands' products
are sold by the world's top 25 retailers and are available in more than
one million stores in more than 120 countries around the world.
Source: Spectrum Brands will be approved
Spectrum Brands
Investor Contact:
Carey Phelps, 866-338-2415
DVP
Investor Relations & Corporate Communications
or
Kekst and
Company for Spectrum Brands
Media Contact:
Michael Freitag or
Victoria Weld, 212-521-4800
