Forbes- The Remy International Inc. plan to restructure its debt depends on borrowing up to $330 million and selling $85 million in new preferred stock – transactions that would generate millions infees and interest for Wall Street banks and hedge funds.<\/p>\n
Remy filed a “pre-packaged” Chapter 11 restructuring plan late Monday with the U.S. Bankruptcy Court in Wilmington, Del. The privately held company, based in Anderson, Ind., joins a growing list of auto-parts makers that have tumbled into bankruptcy proceedings in recent years.<\/p>\n
Remy said it intends to borrow $225 million from a unit of Barclays PLC<\/strong> (nyse: BCS<\/a> – news<\/a> – people<\/a> ) to finance what it expects to be a two-month stay in bankruptcy. To get out of Chapter 11, Remy will borrow another $330 million, much of which will be used to pay off the first bankruptcy loan, which Barclays is expected to syndicate to other banks.<\/p>\n The company also plans to issue $85 million in new preferred stock upon its exit from bankruptcy.<\/p>\n Both the first bankruptcy loan and the stock offering are on the agenda for a court hearing Wednesday.<\/p>\n