Wornick files for Chapter 11 bankruptcy

[Major_Tom]

The company is currently owned by New York-based Veritas Capital Fund II LP, which bought it in 2003 for about $155 million.

Whoa...

Could it be this is a result of typical hedge-funds / private equity company behaviour? "Buy it, strip it, flip it"

Major_Tom

[kman]

Here's an update to the story regarding Wornick's emergence from Chapter 11:

From: http://www.bizjournals.com/cincinnati/s ... aily2.html

Creditors OK Wornick's bankruptcy reorganization plan
Monday, June 16, 2008 - 9:15 AM EDT
Business Courier of Cincinnati

Wornick Co.'s emergence from Chapter 11 bankruptcy could come by the end of the month, after creditors approved the company's reorganization plan filed in April.

The approving creditors own 96 percent, or $108.3 million of the company's secured note claims, according to notice on www.BankruptcyData.com. A plan confirmation hearing has been set for June 25.

According to the April plan, holders of $125 million of senior secured notes would be paid 36 percent of the principal and accrued interest owed as of the bankruptcy petition filing date in February. General unsecured creditors would receive 100 percent of their claims, totaling about $1 million.

The pre-bankruptcy owners of the Blue Ash-based company would lose all of their interest in the business and would not have any stake in the reorganized company. Wornick, whose primary business is the production of meals-ready-to-eat (MREs) and other shelf-stable food products for the U.S. military and private food companies, was acquired in 2004 by an affiliate of Veritas Capital, a private equity firm, for $155 million.

The company filed for Chapter 11 reorganization in February, saying high debt levels forced the action.

[kman]

Here's another update. It looks like their reorganization plan was accepted. It looks like "Viren Acquisition Corp" is the new owner.

From: http://www.businesswire.com/portal/site ... ewsLang=en

The Wornick Company Plan of Reorganization Confirmed

Court Approves Sale of Equity of Reorganized Company to Viren Acquisition Corp.

CINCINNATI--(BUSINESS WIRE)--The Wornick Company, a leading manufacturer of ready-to-eat shelf stable food, announced today that it has received confirmation of its Amended Joint Plan of Reorganization, dated April 4, 2008, (the “Plan”) from the U.S. Bankruptcy Court for the Southern District of Ohio in Cincinnati. U.S. Bankruptcy Court Judge J. Vincent Aug, Jr. held a confirmation hearing on June 25 and today issued an order (the “Confirmation Order”) approving the Plan.

The Confirmation Order approves, among other things, the sale of the equity in the reorganized Wornick to Viren Acquisition Corp. (“Viren”), a company owned by the holders of approximately 85% of Wornick’s senior secured notes. The sale to Viren is expected to close in early July, and Wornick will emerge from Chapter 11 upon the closing of the transaction.

“We obviously are extremely pleased by the Court’s approval of our Plan of Reorganization and the sale to Viren,” said Jon Geisler, President and Chief Executive Officer of The Wornick Company. “Viren’s shareholders are well-capitalized and committed to investing in our long-term growth and success. Upon our emergence from Chapter 11, Wornick will have a much stronger balance sheet. We will have the resources to take full advantage of the fundamental strength of the business and our leading market position,” Mr. Geisler said.

Once the company emerges from Chapter 11, there will be a new seven person Board of Directors. Mr. Geisler will continue to serve as President and Chief Executive Officer of Wornick and no senior management changes are expected.

“We completed our Chapter 11 financial restructuring in less than five months, which is a remarkable achievement,” said Mr. Geisler. “The result is a testament to the outstanding effort put forth by the management team, Wornick’s employees, our Board of Directors, our senior lenders and bondholders and our outside professionals. All of these groups contributed greatly to the successful restructuring of Wornick. I would also like to thank our customers and suppliers for their support and understanding during this process,” Mr. Geisler said.

For more information about the Chapter 11 case, including access to Court documents, please visit http://www.kccllc.net/wornick .