Lumileds plan accepted by all voting first-lien loan claimholders

By Sarah Lizee

Olympia, Wash., Oct. 11 – Lumileds Holding BV’s pre-packaged Chapter 11 plan of reorganization was accepted by all voting first-lien loan claimholders, according to a tabulation summary filed with the U.S. Bankruptcy Court for the Southern District of New York.

Specifically, all 430 holders of $1.56 billion of the claims voted to accept the plan.

The plan hearing is scheduled for Oct. 14.

As previously reported, Lumileds entered into a restructuring support agreement with lenders of a majority of the outstanding loans under its prepetition first-lien debt facility, and sponsors AP Bright Holdings (Lux) Sarl, Metaaldraadlampenfabriek Volt BV and Alnitak (MEP) BV.

The company plans to use the restructuring to deleverage and strengthen its balance sheet by over $1.3 billion, accelerate its growth, and inject up to $275 million of liquidity.

Under the terms of the RSA, the existing secured lenders are expected to support a transaction that will reduce the company’s funded debt from about $1.7 billion to $400 million, comprised of takeback debt and post-petition loans, which will be combined into a five-year exit facility.

A majority of the company’s lenders and future sponsors are also participating in the company’s $275 million debtor-in-possession financing, which was syndicated following approval by the court as part of the company’s first-day motions.

Along with first-lien loan claims, the DIP loans will be converted into exit first-lien term loans on the plan effective date.

Under the plan, holders of first-lien loan claims will receive their pro rata share of 100% of the equity in the reorganized debtors and the exit first-lien takeback term loans.

General unsecured claims will be paid in full or otherwise remain unimpaired.

Other secured claims, other priority claims, intercompany claims and intercompany interests are unimpaired.

Holders of subordinated claims, existing interests in Luminescence Cooperatief UA and existing co-investment interests in Aegletes BV are impaired and deemed to reject the plan.

Lumileds, based in San Jose, Calif., develops, manufactures and distributes light-emitting diode (LED) devices, light bulbs and related products for automotive, general and specialty lighting. The company filed bankruptcy on Aug. 29 under Chapter 11 case number 22-11155.

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