On October 1, 2020, UTEX Industries, Inc. and certain of its affiliates commenced a solicitation of votes to accept the Joint Prepackaged Chapter 11 Plan of UTEX Industries, Inc. and its Affiliated Debtors (as amended, modified, or supplemented from time to time, the “Prepackaged Plan”) from holders of first lien credit agreement claims in Class 3 and holders of second lien credit agreement claims in Class 4. The Prepackaged Plan may be viewed here. The accompanying Disclosure Statement (as amended, modified, or supplemented from time to time, the “Disclosure Statement”) may be viewed here.
On October 8, 2020, UTEX Industries, Inc. and certain of its affiliates (the “Debtors”) 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 Texas. The Prepackaged Plan, once implemented, will reduce the Debtors’ funded debt by approximately $700 million and will provide the Debtors with up to $42.5 million in new financing. The Prepackaged Plan further provides that all general unsecured creditors, including UTEX’s vendors and business partners, will remain unimpaired and will be paid in full in the ordinary course of business. The cases are pending before the Honorable David R. Jones and are being jointly administered for procedural purposes under Case Number 20-34932. This is the official website for the chapter 11 cases.
On October 30, 2020, the Bankruptcy Court entered the Findings of Fact, Conclusions of Law, and Order (I) Approving Disclosure Statement on a Final Basis and (II) Confirming Joint Prepackaged Chapter 11 Plan of Utex Industries, Inc. and Its Affiliated Debtors [Docket No. 172]. On December 3, 2020, the Effective Date of the Plan occurred, and the Company completed its financial restructuring process and emerged from chapter 11 [Docket No. 187].