Welcome!

News Feed Item

AMF Bowling Reaches Restructuring Agreement To Significantly Reduce Its Debt And Strengthen Balance Sheet

AMF to Recapitalize Through Consensual "Pre-arranged" Chapter 11 Reorganization

RICHMOND, Va., Nov. 13, 2012 /PRNewswire/ -- AMF Bowling Worldwide, Inc. ("AMF") announced today that it has reached an agreement with a majority of its secured first lien lenders and the landlord of a majority of its bowling centers to restructure through a first lien lender-led debt-for-equity conversion, subject to higher and better offers through a marketing process.  AMF's restructuring will proceed on an expedited basis and will result in the elimination of a significant amount of its outstanding debt, providing AMF with the operational flexibility and resources to invest in improvements to its bowling centers and other growth initiatives.

Steve Satterwhite, AMF's Chief Financial Officer and Chief Operating Officer, said, "With the support of our key financial stakeholders, we will recapitalize our balance sheet and reduce our burdensome debt load and related costs. This is a necessary next step in our strategic plan to strengthen AMF financially and operationally for the future.  Over the past several years, amid adverse economic conditions that hit our core customer base hard, we continued to strengthen our operations, expand our league and open play offerings, and improve the customer experience. However, we must right-size our capital structure to gain the financial flexibility to improve our bowling centers and make other long-term investments that will help ensure AMF's future profitability and success."

To implement its pre-arranged restructuring, AMF and certain of its subsidiaries filed voluntary petitions for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Eastern District of Virginia, Richmond Division.  AMF intends to file a plan of reorganization and related disclosure statement in the near term, as well as a motion seeking Court approval of marketing procedures to solicit higher and better offers as part of the plan.  AMF anticipates completing the restructuring process and exiting Chapter 11 within approximately five months.

AMF intends to continue normal business operations during the restructuring, and its bowling centers are maintaining their normal schedules and welcoming customers.  Leagues are continuing to bowl as scheduled, and center events and promotions are continuing as planned.  AMF expects to continue honoring its customer and league programs and policies, including those pertaining to coupons, gift cards and refunds. It is anticipated that employees will be paid in the normal manner, and all health and other benefits will continue.  AMF intends to make timely payment for goods and services received during the reorganization process in the normal course of business and in accordance with the terms of existing agreements.

Fred Hipp, AMF's President and Chief Executive Officer, said, "Over the last several years, Steve and his operations team have worked hard to improve our bowling centers and operations. AMF is now well-positioned to take full advantage of this restructuring. We're committed to making AMF a truly great company, for both the bowling public and our employees."

Satterwhite added, "This legal process provides us with the opportunity to resolve our financial challenges, and it should be virtually seamless going forward for our customers, suppliers and employees.  AMF is open for business and our bowling centers are serving customers as usual, with our centers staff focused on providing the best possible bowling experience."

AMF has secured a commitment for debtor-in-possession (DIP) financing from certain of its existing first lien secured lenders for $50 million.  Subject to Court approval, these funds will be available to satisfy obligations associated with conducting AMF's business, including payment for goods and services provided after the filing.

AMF has filed customary "First Day Motions" with the Bankruptcy Court, which, if granted, will help ensure a smooth transition to Chapter 11 without business disruption and minimize adverse impact on AMF's employees, customers, suppliers and vendors.  The motions are expected to be addressed promptly by the Court.

More information about AMF's restructuring is available at www.AMF.com/restructuring. Court filings and claims information are available at www.kccllc.net/AMF.  Information for suppliers and vendors is available toll-free at 1-866-967-0495 or 1-310-751-2695 for callers from outside the U.S. and Canada, or by email at [email protected].

QubicaAMF, in which AMF holds a fifty percent (50%) investment, is not included in the filing and continues to operate outside of the U.S. bankruptcy process, without interruption.

AMF's legal advisors for the Chapter 11 proceedings are Kirkland & Ellis LLP and McGuireWoods LLP, its restructuring advisor is McKinsey & Co., and its financial advisor is Moelis & Company, Inc.

Forward Looking Statements:
Certain statements in this press release constitute "forward-looking statements." All statements other than statements of historical facts included herein, including those regarding our future financial position and results, business strategy, plans, and objectives of management for future operations, are forward-looking statements.  Such forward-looking statements involve known and unknown risks, uncertainties, and other factors which may cause our actual results, performance or achievements, or industry results, to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding our present and future business strategies and the environment in which we will operate in the future. Although we believe that the expectations reflected in the forward-looking statements are reasonable at the time made, we cannot guarantee future results, levels of activity, performance, or achievements.

About AMF Bowling:
AMF is the world's largest owner and operator of bowling centers.  Since the introduction of the automated pinspotter in 1946, AMF has been a leader in the bowling industry.  More than 20 million bowlers per year make AMF their bowling destination of choice.  AMF is where America goes bowling.

Media Contacts: 

AMF Bowling Centers, Inc.
Merrell Wreden
(804) 559-8643
 

Kekst and Company 
Kimberly Kriger  
(212) 521-4800

SOURCE AMF Bowling Worldwide, Inc.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Companies can harness IoT and predictive analytics to sustain business continuity; predict and manage site performance during emergencies; minimize expensive reactive maintenance; and forecast equipment and maintenance budgets and expenditures. Providing cost-effective, uninterrupted service is challenging, particularly for organizations with geographically dispersed operations.
SYS-CON Events announced today that Catchpoint Systems, Inc., a provider of innovative web and infrastructure monitoring solutions, has been named “Silver Sponsor” of SYS-CON's DevOps Summit at 18th Cloud Expo New York, which will take place June 7-9, 2016, at the Javits Center in New York City, NY. Catchpoint is a leading Digital Performance Analytics company that provides unparalleled insight into customer-critical services to help consistently deliver an amazing customer experience. Designed...
When building large, cloud-based applications that operate at a high scale, it’s important to maintain a high availability and resilience to failures. In order to do that, you must be tolerant of failures, even in light of failures in other areas of your application. “Fly two mistakes high” is an old adage in the radio control airplane hobby. It means, fly high enough so that if you make a mistake, you can continue flying with room to still make mistakes. In his session at 18th Cloud Expo, Lee...
With the proliferation of both SQL and NoSQL databases, organizations can now target specific fit-for-purpose database tools for their different application needs regarding scalability, ease of use, ACID support, etc. Platform as a Service offerings make this even easier now, enabling developers to roll out their own database infrastructure in minutes with minimal management overhead. However, this same amount of flexibility also comes with the challenges of picking the right tool, on the right ...
DevOps is not just last year’s buzzword. Companies with DevOps practices are 2.5x more likely to exceed profitability, market share, and productivity goals. But how do you enable high performance? What can you do right now to start? Find out from DevOps experts including Gene Kim, co-author of "The Phoenix Project," and the Dynatrace Center of Excellence.
SYS-CON Events announced today that Column Technologies will exhibit at SYS-CON's @DevOpsSummit at Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Established in 1998, Column Technologies is a global technology solutions provider with over 400 employees, headquartered in the United States with offices in Canada, India, and the United Kingdom. Column Technologies provides “Best of Breed” technology solutions that automate the key DevOps principal...
SYS-CON Events announced today that Interoute, owner-operator of one of Europe's largest networks and a global cloud services platform, has been named “Bronze Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2015 at the Javits Center in New York, New York. Interoute is the owner-operator of one of Europe's largest networks and a global cloud services platform which encompasses 12 data centers, 14 virtual data centers and 31 colocation centers, with connections to 195 ad...
Join us at Cloud Expo | @ThingsExpo 2016 – June 7-9 at the Javits Center in New York City and November 1-3 at the Santa Clara Convention Center in Santa Clara, CA – and deliver your unique message in a way that is striking and unforgettable by taking advantage of SYS-CON's unmatched high-impact, result-driven event / media packages.
SYS-CON Events announced today that Commvault, a global leader in enterprise data protection and information management, has been named “Bronze Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Commvault is a leading provider of data protection and information management...
There will be new vendors providing applications, middleware, and connected devices to support the thriving IoT ecosystem. This essentially means that electronic device manufacturers will also be in the software business. Many will be new to building embedded software or robust software. This creates an increased importance on software quality, particularly within the Industrial Internet of Things where business-critical applications are becoming dependent on products controlled by software. Qua...
As someone who has been dedicated to automation and Application Release Automation (ARA) technology for almost six years now, one of the most common questions I get asked regards Platform-as-a-Service (PaaS). Specifically, people want to know whether release automation is still needed when a PaaS is in place, and why. Isn't that what a PaaS provides? A solution to the deployment and runtime challenges of an application? Why would anyone using a PaaS then need an automation engine with workflow ...
With an estimated 50 billion devices connected to the Internet by 2020, several industries will begin to expand their capabilities for retaining end point data at the edge to better utilize the range of data types and sheer volume of M2M data generated by the Internet of Things. In his session at @ThingsExpo, Don DeLoach, CEO and President of Infobright, will discuss the infrastructures businesses will need to implement to handle this explosion of data by providing specific use cases for filte...
SYS-CON Events announced today that Pythian, a global IT services company specializing in helping companies adopt disruptive technologies to optimize revenue-generating systems, has been named “Bronze Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2015 at the Javits Center in New York, New York. Founded in 1997, Pythian is a global IT services company that helps companies compete by adopting disruptive technologies such as cloud, Big Data, advanced analytics, and DevO...
SYS-CON Events announced today that Avere Systems, a leading provider of enterprise storage for the hybrid cloud, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Avere delivers a more modern architectural approach to storage that doesn’t require the overprovisioning of storage capacity to achieve performance, overspending on expensive storage media for inactive data or the overbuilding of data centers ...
CIOs and those charged with running IT Operations are challenged to deliver secure, audited, and reliable compute environments for the applications and data for the business. Behind the scenes these tasks are often accomplished by following onerous time-consuming processes and often the management of these environments and processes will be outsourced to multiple IT service providers. In addition, the division of work is often siloed into traditional "towers" that are not well integrated for cro...