Blue Bird Corp. announced that the prepackaged Chapter 11 bankruptcy plan filed last week with the U.S. District Court in Nevada was confirmed and becomes effective today (Feb. 2).
The approved restructuring plan, which was supported by 93% of the company’s lenders, increased Blue Bird’s borrowing availability by $52.5 million through a new and expanded loan agreement and included a debt-for-equity conversion plan that strengthens the company’s balance sheet.
The plan also provides for a full recovery to all of the company’s general unsecured creditors.
“We are going to take full advantage of the opportunities this restructuring plan provides Blue Bird,” said Jeffry Bust, president and CEO.
The Fort Valley, Ga., company, which manufactures school buses and Wanderlodge Class A motorhomes, said the completion of the restructuring process allows Blue Bird to focus on strengthening business operations and improving financial performance.