The Company's wholly owned Australian subsidiaries have decided to initiate a planned Voluntary Administration in Australia. Such Australian subsidiaries include Carbon Revolution Pty. Ltd. and Carbon Revolution Operations Pty Ltd (the "Australian Subsidiaries").
The Company and its Australian Subsidiaries believe that today's decision is the gateway to enabling the Australian Subsidiaries to become a nimble and financially secure global leader in lightweight wheel technology. This critical step is intended to set the stage to drive a new era of growth, further technological innovation, and enhance customer engagement as the Australian business seeks to further strengthen relationships with its customers, suppliers, and employees.
"Now is the right time for Carbon Revolution to engage in this process, one that holds the opportunity of a de-leveraged balance sheet and the ability to expand the depth of our relationships with our current customers and add new ones," Eugene Davis, director of the Australian Subsidiaries, said.
The Company and its Australian Subsidiaries have entered into a Restructuring Support Agreement (RSA) with substantially all its senior secured lenders, who have agreed to the financial restructure of Carbon Revolution's business in Australia upon its exit from Voluntary Administration. This organized restructuring is designed to enable Carbon Revolution's Australian Subsidiaries to unburden themselves of all senior secured debt and certain other legacy obligations, so that they can emerge as a stronger, privately-held business. The organized restructuring is subject to the approval of the Administrators (who were appointed by the Board of the Australian Subsidiaries) and the Australian subsidiaries' creditors.
Coming out of Voluntary Administration, the restructured Carbon Revolution business in Australia can look forward to unlocking the growing global market for lightweight wheels through its strategic Four Pillar Framework:
Right Technology: Continue to focus on lightweight engineering products and processes.
Right Products: Maintain its status globally as the leader in carbon fiber wheels.
Right Geography: Reduce cost and manufacture closer to its customers, significantly shortening its supply chain, and improving its speed of delivery.
Right Customers: Drive customer satisfaction, a foundational discipline that is the promise ...
