Jason Industries (JASN) Files Chapter 11

Jason Industries, Inc. (OTCQX: JASN) (“Jason” or the “Company”) today announced that it is taking two important steps in its previously announced comprehensive restructuring plan that, once completed, will deleverage the Company’s balance sheet by $250 million. The Company expects its day-to-day operations to continue without interruption and without disruption to its employees, customers, suppliers and vendors.

Jason previously entered into a restructuring support agreement (the “Agreement”) with holders of approximately 87 percent of its first lien debt that, pursuant to the terms of the Agreement, will ultimately delever the Company’s balance sheet by $250 million and position Jason for future success. All parties to the Agreement determined that the best way to implement the terms of the Agreement is through a prepackaged chapter 11 plan of reorganization (the “Plan”). Under the Plan, the Company’s first lien lenders have consented to provide the Company with the use of cash collateral to enable Jason to operate its business and minimize the effect of the restructuring for the benefit of Jason’s stakeholders.

To implement the Plan, today the Company commenced the formal process of soliciting votes from lenders to accept or reject the Plan. The Company already has support for the Plan from the vast majority of its first lien lenders, and is soliciting additional support from all of its lenders with the goal of obtaining full consensus. The Company will continue to take those actions necessary to complete its restructuring quickly and efficiently.

Also today, the Company and certain of its direct and indirect subsidiaries voluntarily filed petitions under Chapter 11 of the United States Bankruptcy Code (“Chapter 11”) in the Southern District of New York (the “Chapter 11 Cases”). Under the Chapter 11 Cases, the Company is seeking court approval to:

• Honor all customer programs
• Continue employee wages and benefits without interruption, and
• Pay for goods and services provided to the Company.

“We have aggressively taken steps to simplify Jason and improve the performance and financial strength of our company over the past three years. While these actions have generated positive momentum, we were not able to realize the full benefits of our plans due to market cyclicality and disruptions brought on by the COVID-19 global pandemic,” stated Brian Kobylinski, Chief Executive Officer.

“Directly addressing our balance sheet will enable Jason and its operating businesses, Osborn and Milsco, to build upon our improved operational foundation and reap the benefits of recent cost-reductions and new business wins,” Mr. Kobylinski continued. “We thank our lenders, employees, customers and suppliers for their continued support throughout our process. We will emerge an even stronger company with the opportunity to realize its full potential.”

Moelis & Company LLC is acting as financial advisor, Kirkland & Ellis LLP is acting as legal counsel, and AlixPartners, LLP is acting as restructuring advisor to the Company in connection with the restructuring. Houlihan Lokey Capital, Inc. is acting as financial and restructuring advisor and Weil, Gotshal & Manges LLP is acting as legal counsel to the Company’s Ad Hoc Group of First Lien Creditors.

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