EB Holdings II makes restructuring proposal to PIK lender committee

By Caroline Salls

Pittsburgh, July 28 – EB Holdings II, Inc. delivered a proposal for the restructuring of its €600 million PIK loan agreement to an informal committee of lenders in response to a committee proposal submitted on June 28, according to a news release.

The committee consists of funds affiliated with Alcentra Ltd., Fortress Investment Group/Mount Kellet Capital Management, GoldenTree Asset Management LP, HIG Capital International Advisors LLP/Bayside Capital, Sound Point Capital Management, LP and Varde Partners Europe Ltd.

EB Holdings said the term sheet contains the principal terms and conditions of a potential transaction among the company, sponsor Howard M. Meyers and the PIK lenders.

Under the company’s restructuring proposal, the PIK loan will be retired in its entirety in exchange for the holders receiving majority interest of the equity of EB Holdings and €525 million of five-year secured notes or the cash proceeds resulting from the sale of those securities.

The sponsor will contribute €10 million cash to the company and cause an RSR Corp. contribution to be made.

In exchange, the sponsor and its affiliates will receive a minority interest of the EB Holdings II equity

On or before the plan effective date, RSR will transfer to the company all agreements relevant to Eco-Bat Technologies, including necessary contracts, permits, IT, IP and technology systems.

EB Holdings said its board, and presumably the board members elected to be nominees on the Eco-Bat Technologies board, are expected to continue current personnel globally.

The company said its restructuring will be implemented through a pre-packaged plan of reorganization.

Upon agreement and filing of a pre-packaged plan and its acceptance by the court, EB Holdings said the sponsor is prepared to move forward with an all cash transaction, if the consenting PIK holders request it.

If the PIK holders request the all-cash option but the transaction is not successfully completed, the original restructuring would remain in effect.

EB Holdings said the alternative loan settlement would be in an amount equal to €625 million, consisting of all cash.

EB Holdings II is a Carson City, Nev.-based metals and mining company. The involuntary case was filed on May 18 under Chapter 11 case number 17-12642.

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