The U.S. Bankruptcy Court for the Southern District of Ohio has entered an order confirming Huffy Corporation's Joint Plan of Reorganization following a confirmation hearing held September 22, 2005. The court ruled that Huffy Corporation has met all of the necessary statutory requirements to confirm the plan. With this action, the company expects to emerge from Chapter 11 protection in early October 2005. The company's emergence remains subject to finalizing exit financing arrangements with its lenders on or before that date.
John A. Muskovich, president and CEO, stated, “We are very grateful for the support we have received throughout this process from our key suppliers and our employees,” adding, “The actions we have taken to restructure Huffy during the reorganization will continue at a rapid pace after emergence. We intend to focus on our bicycle and golf businesses as we work to strengthen the Company's operational and financial performance.”
All shares of Huffy Corporation common stock outstanding prior to its emergence from bankruptcy will be cancelled. Because the Company will have less than 300 shareholders of record after emergence, it plans to make the necessary filings with the Securities and Exchange Commission to suspend its registration under the Securities Exchange Act of 1934, effective on or about the date of emergence. Accordingly, Huffy Corporation will no longer be a publicly-traded corporation and will no longer be required to file periodic or other reports with the Securities and Exchange Commission.
On October 20, 2004, Huffy Corporation and certain of its subsidiaries filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Southern District of Ohio, Western Division. The bankruptcy cases are being jointly administered under Case No. 04-39148. Huffy Corporation and its subsidiaries continue to operate their businesses and manage their properties as debtors in possession.
