High Voltage Engineering emerges from Chapter 11

By Jeff Pines

Washington, Aug. 10 - High Voltage Engineering Corp. said it emerged from bankruptcy Tuesday. The company emerged in 163 days.

High Voltage's third amended joint Chapter 11 reorganization plan was confirmed by the U.S. Bankruptcy Court for the District of Massachusetts on July 21, 2004.

Under the plan's terms, all of its 10¾% senior notes due 2004 will be converted into 97% of the equity of the reorganized company.

The pre-Chapter 11 common and preferred stock was cancelled, but the holders will receive warrants to buy up to 10% of the new common stock, subject to dilution.

The Wakefield, Mass.-based manufacturer of generators and power control equipment obtained a $45 million exit facility from a lending group that included some of the same lenders who provided it with a $25 million debtor-in-possession facility. The extra $20 million will be used to fund a portion of the distributions for creditors and for working capital, it said.

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