The company, as per the agreement, will convert the majority of its outstanding term loan debt into newly issued common equity that represents 92.5% of the issued and outstanding common stock.
The plan is expected to reduce the company’s debt by $135m and has been approved by the board of the company and also has the consent from over 60% of its common stock holders.
The proposed restructuring will result in reduction of interest payments; the plan also envisages fresh infusion of a $30m loan to improve the company’s liquidity.
Aventine’s chief executive officer John Castle said, "The Company would like to thank its lenders and significant stakeholders for supporting its business and operations."
"These are difficult times for the industry and the consummation of these transactions is expected to result in a much stronger balance sheet for the Company," added Castle.
