Tuesday, February 3, 2009

Spectrum Brands Files for Bankruptcy

Maker of all things commodity (Rayovac batteries, Remington grooming products and manure) just filed for bankruptcy protection (Western District of Texas, 09-50456). As part of the filing, the company announced it had reached an agreement with holders of 70% of its substantial $2.6 billion in outstanding debt to perform a debt-for-debt and equity exchange (here for the full release). Existing stockholders are out of luck as the current outstanding shares will be liquidated under the plan.

As we love tracking providers of distressed financing, the company announced it has received commitments for a $235 million DIP from existing lenders (again, not new money).

Advisors raking in some good scavenger pay are Skadden Arps as legal counsel, and infamous Perella Weinber, of FDIC adivsor fame, as financial thinktank.
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