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Lazy Days' R.V. Center, Inc. of Sefner, Florida announced on Thursday
that it has received the requisite approvals from its lenders and
bondholders to move ahead with its previously announced debt
restructuring plan. The restructuring plan is expected to eliminate all
of the company's $137 million of bond debt, reducing its annual cash
interest costs by approximately $16.2 million through the elimination of bond interest payments.
 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.
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