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 The company's ongoing cash interest expense
will be approximately $3 million incurred on its vehicle financing
line, representing a reduction of 84 percent in annual cash interest
expense from a total of $19.2 million prior to the restructuring.As previously communicated, in order to implement this "pre-packaged" restructuring plan, the Company today filed a voluntary petition for reorganization under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court in Wilmington, Delaware. Because approvals have already been received from its lenders and the requisite percentages of the bondholders, Lazy Days' expects to move through the court-supervised process very quickly. The prepackaged Chapter 11 is expected to be completed by the end of the year, with minimal disruption to the RV dealer's business and will remain open for business as usual. UNDER THE PROPOSED PLAN, all suppliers will be paid in full -- or "unimpaired." Accordingly, Lazy Days' has filed motions seeking authorization from the court to continue to pay its suppliers under normal terms. Such approvals are routinely granted. The company currently has adequate cash on hand to satisfy obligations associated with conducting business in the ordinary course. In addition, the company's floor plan lenders, Bank of America and Key Bank, have agreed to provide interim funding through the company’s credit facility to support the acquisition of inventory during the restructuring period and have also consented to an amended floor plan agreement that will be effective on confirmation of the plan. The ad hoc committee of bondholders has agreed to invest $10,000,000 into the reorganized Lazydays. Top of Page Get your FREE RV Travel Newsletter every week - sign up now.
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