Grove Worldwide’s plans for financial restructuring were approved by the US bankruptcy court on 17 September, allowing the company to emerge from its voluntary Chapter 11 proceeding.
‘The decision by the court represents very good news because it paves the way for a stronger and more financially secure Grove to compete in the global marketplace,’ said Jeff Bust, Grove’s chairman and chief executive officer.
‘Under the terms of the plan, Grove Worldwide’s debt will be reduced from $584m to $205m and annual interest expense will be reduced from $63m to $17m, thus providing the company with additional resources to compete more effectively in the marketplace, along with added financial flexibility to invest in the company’s future,’ he said.
‘I want to express my appreciation to all of the members of Grove’s extended family – our employees, suppliers, distributors and end users – for the support and confidence that they have demonstrated over the past several months as we have gone through the restructuring process,’ Bust concluded.
Over the next few weeks further details are expected to emerge from Grove regarding such issues as the new board directors representing the various bondholders that now have equity in the company, and the company’s future plans. Seeking a public listing through flotation remains a firm option, although the prospect of the various institutions that now own Grove accepting a takeover bid can still not be ruled out.
