Emerges from Chapter 11 Protection with Strengthened Balance Sheet and Well-Positioned for Success
Donald Hampton, Jr. Named CEO to Drive Company’s Go-Forward Growth Strategy
FAYETTEVILLE, Ark., June 2, 2020 /PRNewswire/ — Pace Industries, LLC (“the Company”) today announced that it has emerged from Chapter 11 bankruptcy protection, successfully completing its financial restructuring plan to deleverage the Company’s balance sheet and create a sustainable capital structure. This milestone marks the implementation of the Company’s Plan of Reorganization (“the Plan”), which was confirmed by the U.S. Bankruptcy Court for the District of Delaware on May 29, 2020. The Company completed its restructuring in approximately a month and a half and met all commitments to the Company’s stakeholders throughout the Chapter 11 process.
The Company emerges from Chapter 11 protection with a strengthened balance sheet and well-positioned to realize the full benefit of its previously initiated operational improvements as well as additional cost structure improvements. Through the Plan, the Company has converted its existing senior secured notes into 100% of the equity of the reorganized Company and looks forward to benefiting from the support and operational expertise of its two largest senior secured lenders, TCW Group and Cerberus Capital Management, L.P.
Effective immediately, Donald (Donnie) Hampton, Jr. has been appointed as Chief Executive Officer to lead the Company going forward.
“We begin this next chapter for Pace Industries as a financially stronger company, which will enable us to capture the full benefit of the cost-saving initiatives implemented prior to the COVID-19 outbreak as well as new market strategies,” said Donnie Hampton, Jr., incoming Chief Executive Officer. “I am excited to lead Pace Industries forward as we execute on our strategic growth opportunities and continue to harness our market-leading capabilities to deliver for our customers as a fully-integrated provider.”
Mr. Hampton joins Pace Industries with more than two decades of industry experience and global P&L leadership. He has leveraged Six Sigma, Kanban, JIT and synchronous manufacturing strategies for companies such as Honeywell International (previously Allied Signal), Hayes Lemmerz, Rea Magnet Wire Company and, most recently, Faurecia. In his roles he has consistently ignited revenue and profit growth, equity value creation and world-class standards of operational excellence. He is a member of the Association for Manufacturing Excellence, Automotive Industry Professionals Worldwide and OPEX – Global Operating Excellence Network.
Outgoing Chief Executive Officer Scott Bull will be supporting Mr. Hampton in an advisory capacity to ensure a smooth transition. The Board is grateful to Mr. Bull for his 41 years of service to the Company – including 12 years as Chief Executive Officer – and wishes him well in his future endeavors.
“Pace Industries has a bright future ahead of it, and I am confident handing the reins to Donnie, who I know will do an outstanding job leading the Company,” said Scott Bull. “He is committed to maintaining the same energy with which Pace Industries serves its customers and provides high-quality products to meet their unique needs. Donnie’s experience and leadership will help the Company execute on its strategy and position Pace Industries for success.”
Looking forward, the Company plans to pursue a new go-forward growth strategy, focused on building its position in key industries and expanding in growth markets. Pace Industries will continue to keep customers at the core of everything it does and, with a bolstered financial foundation, is poised to invest in the capabilities to meet their needs now and in the future. The Company will continue to maintain and build on its current standards for safety, quality and corporate citizenship moving forward.
“From the implementation of new programs and initiatives, through the COVID-19 outbreak and this Chapter 11 process, this Company would not have been able to reach today’s milestone without the dedication and support of our team members,” Mr. Hampton continued. “I look forward to meeting many of the Company’s employees and customers in the weeks and months to come and am excited to roll up my sleeves and get to work.”
Filings and additional information on the Company’s emergence from bankruptcy can be found at http://www.kccllc.net/pace.
The Company was represented in this matter by Willkie Farr & Gallagher LLP and Young Conaway Stargatt & Taylor, LLP. FTI Consulting served as financial advisor. The senior secured noteholders were represented by Schulte Roth & Zabel LLP and the revolving credit facility lenders were represented by McGuireWoods LLP and Conway MacKenzie.