An Apollo Global Management LLC-owned lighting components firm said it has agreed on a restructuring plan to help reduce debt by $1.3 billion, as it grapples with supply chain constraints exacerbated by the war in Ukraine, Bloomberg New reported. Lumileds Holding B.V., which supplies energy-efficient LED lighting for automotive displays, said in a statement it had entered into the agreement with key lenders, and that it had commenced Chapter 11 proceedings limited to its US and Netherlands operations. It said it expected to emerge from proceedings within 60 days. The Dutch-headquartered company’s European, Asian, and other foreign subsidiaries and affiliates are not included in the filing and are unaffected by the chapter 11 process, according to the statement. It said it expected employees to continue receiving wages and benefits. “We have proactively taken steps to de-leverage our balance sheet given the ongoing challenges presented by global supply constraints, COVID-related issues, and the crisis in Ukraine,” said Matt Roney, CEO of Lumileds. Under the terms of the restructuring agreement, the existing secured lenders are expected to commit to support, and vote in favor of, a deal that will reduce the company’s funded debt to about $400 million from around $1.7 billion, according to the statement. This would include takeback debt and post-petition loans, which would be combined into a five-year exit facility. The deal would include as much as $275 million of debtor-in-possession financing, according to the statement.
