Jason Industries is set to emerge from Chapter 11 bankruptcy as a private company a little more than two months after initially filing for protection in the U.S. Bankruptcy Court for the Southern District of New York.
The Milwaukee-based manufacturer filed for bankruptcy in late June after announcing its restructuring on June 8. The company ended 2019 with nearly $379 million in debt and the restructuring process reduced the company’s debt by $250 million.
Creditors holding around $320 million in claims accepted the restructuring plan while those holding around $11.3 million in second lien credit claims rejected it. A federal bankruptcy judge signed off on the plan Wednesday.
Jason is the parent company of Milwaukee-based Milsco, a seating manufacturer that supplies Harley-Davidson along with agricultural, construction and other markets, and Osborn, a maker of industrial brushes, buffs, compounds and abrasives.
Jason’s new ownership is drawn from its existing senior secured creditors, including Monomoy Capital Partners and Credit Suisse Asset Management. Monomoy and Credit Suisse will both appoint representatives to serve on the company’s new board of directors.
“We’re very pleased with the outcome of the company’s reorganization, and we look forward to working with management to ensure that both Osborn and Milsco have the necessary financial and operational resources to deliver profitable growth for years to come,” said Dan Collin, co-chief executive officer of Monomoy and the incoming chairman of Jason’s board.
Other board members include James Janik, chairman and former CEO of Douglas Dynamics Inc., Mark Blaufuss, an operating executive at The Carlyle Group, and Helen Ruth, a senior operating executive at Monomoy, according to court filings.
Brian Kobylinski will stay on as CEO of Jason along with other members of the company’s management team.
“We are thankful to our many stakeholders, including our creditors, customers, employees, and vendors for their ongoing support,” Kobylinski said. “The confidence our stakeholders maintain in Jason’s long-term value creation opportunities enabled us to reach this milestone in an expedited time frame.”
“We look forward to emerging from restructuring as a financially stronger company, which will enable us to capture the full benefits of the operational improvements, cost reductions and growth initiatives implemented prior to the COVID-19 global pandemic,” he added.