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
SYS-CON Events announced today that N3N will exhibit at SYS-CON's @ThingsExpo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. N3N’s solutions increase the effectiveness of operations and control centers, increase the value of IoT investments, and facilitate real-time operational decision making. N3N enables operations teams with a four dimensional digital “big board” that consolidates real-time live video feeds alongside IoT sensor data a...
Mobile device usage has increased exponentially during the past several years, as consumers rely on handhelds for everything from news and weather to banking and purchases. What can we expect in the next few years? The way in which we interact with our devices will fundamentally change, as businesses leverage Artificial Intelligence. We already see this taking shape as businesses leverage AI for cost savings and customer responsiveness. This trend will continue, as AI is used for more sophistica...
Today most companies are adopting or evaluating container technology - Docker in particular - to speed up application deployment, drive down cost, ease management and make application delivery more flexible overall. As with most new architectures, this dream takes significant work to become a reality. Even when you do get your application componentized enough and packaged properly, there are still challenges for DevOps teams to making the shift to continuous delivery and achieving that reducti...
What is the best strategy for selecting the right offshore company for your business? In his session at 21st Cloud Expo, Alan Winters, U.S. Head of Business Development at MobiDev, will discuss the things to look for - positive and negative - in evaluating your options. He will also discuss how to maximize productivity with your offshore developers. Before you start your search, clearly understand your business needs and how that impacts software choices.
Real IoT production deployments running at scale are collecting sensor data from hundreds / thousands / millions of devices. The goal is to take business-critical actions on the real-time data and find insights from stored datasets. In his session at @ThingsExpo, John Walicki, Watson IoT Developer Advocate at IBM Cloud, will provide a fast-paced developer journey that follows the IoT sensor data from generation, to edge gateway, to edge analytics, to encryption, to the IBM Bluemix cloud, to Wa...
Enterprises are moving to the cloud faster than most of us in security expected. CIOs are going from 0 to 100 in cloud adoption and leaving security teams in the dust. Once cloud is part of an enterprise stack, it’s unclear who has responsibility for the protection of applications, services, and data. When cloud breaches occur, whether active compromise or a publicly accessible database, the blame must fall on both service providers and users. In his session at 21st Cloud Expo, Ben Johnson, C...
Most of the time there is a lot of work involved to move to the cloud, and most of that isn't really related to AWS or Azure or Google Cloud. Before we talk about public cloud vendors and DevOps tools, there are usually several technical and non-technical challenges that are connected to it and that every company needs to solve to move to the cloud. In his session at 21st Cloud Expo, Stefano Bellasio, CEO and founder of Cloud Academy Inc., will discuss what the tools, disciplines, and cultural...
SYS-CON Events announced today that Fusic will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Fusic Co. provides mocks as virtual IoT devices. You can customize mocks, and get any amount of data at any time in your test. For more information, visit https://fusic.co.jp/english/.
SYS-CON Events announced today that Massive Networks, that helps your business operate seamlessly with fast, reliable, and secure internet and network solutions, has been named "Exhibitor" of SYS-CON's 21st International Cloud Expo ®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. As a premier telecommunications provider, Massive Networks is headquartered out of Louisville, Colorado. With years of experience under their belt, their team of...
21st International Cloud Expo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Me...
SYS-CON Events announced today that Enroute Lab will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Enroute Lab is an industrial design, research and development company of unmanned robotic vehicle system. For more information, please visit http://elab.co.jp/.
SYS-CON Events announced today that MIRAI Inc. will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. MIRAI Inc. are IT consultants from the public sector whose mission is to solve social issues by technology and innovation and to create a meaningful future for people.
With the rise of DevOps, containers are at the brink of becoming a pervasive technology in Enterprise IT to accelerate application delivery for the business. When it comes to adopting containers in the enterprise, security is the highest adoption barrier. Is your organization ready to address the security risks with containers for your DevOps environment? In his session at @DevOpsSummit at 21st Cloud Expo, Chris Van Tuin, Chief Technologist, NA West at Red Hat, will discuss: The top security r...
IBM helps FinTechs and financial services companies build and monetize cognitive-enabled financial services apps quickly and at scale. Hosted on IBM Bluemix, IBM’s platform builds in customer insights, regulatory compliance analytics and security to help reduce development time and testing. In his session at 21st Cloud Expo, Lennart Frantzell, a Developer Advocate with IBM, will discuss how these tools simplify the time-consuming tasks of selection, mapping and data integration, allowing devel...
SYS-CON Events announced today that Mobile Create USA will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Mobile Create USA Inc. is an MVNO-based business model that uses portable communication devices and cellular-based infrastructure in the development, sales, operation and mobile communications systems incorporating GPS capabi...