Re:
Sorry to be the bearer of bad news, but Woods has worked on resructuring its debt: WOODS EQUIPMENT COMPANY REPORTS AGREEMENT ON DEBT RESTRUCTURING
Rockford, Ill. (November 15, 2001) - Woods Equipment Company ("Woods") and its subsidiary, WEC Company ("WEC" together with Woods, the "Company"), announced that a lock-up agreement has been reached with the holders of WEC's 12% Senior Notes due 2009 (the "Notes") and Woods' 15% Senior Discount Debentures due 2011 (the "Debentures") to restructure the Company's debt. Under the agreement, the Note holders and Debenture holders have agreed to exchange all of their Notes and Debentures for all of the common stock of Woods. Additionally, the Company will enter into an amended revolving credit facility with Fleet Capital Corporation as agent, increasing the current facility from $50 million to $70 million. This new facility along with a senior secured note of approximately $3.5 million evidencing certain acquisition indebtedness will be the only senior secured indebtedness of the Company. The restructuring is subject to the negotiation of definitive transaction documentation and is expected to be completed by December 31, 2001. Stockholders holding a majority of the capital stock of Woods have also agreed to vote in favor of the restructuring.
Upon completion of the restructuring, the Company will have eliminated $176.7 million of long-term debt and related interest from its balance sheet and with the increased revolver believes it will have adequate liquidity to meet its future growth needs. Additionally, a new five-member board of directors will be elected by shareholders of the restructured Company and will include designees of significant financial institutions and industry leaders. Edward R. Olson, the Company's current President, CEO and Chairman of the Board, will remain as President, CEO and a member of the new board.
"During the past ten months, we have reviewed all of the Company's operations and have made many difficult decisions in order to improve the Company's financial position," said Edward R. Olson. "With this agreement, we believe we will have the structure in place to ensure the Company's long-term viability. The entire management team wishes to thank all of our customers and suppliers who have worked with us during this difficult period," said Olson.
And after that comes:
JOHN DEERE, WOODS EQUIPMENT COMPANY TO DISSOLVE ALLOWAY INDUSTRIES, L.L.C. JOINT VENTURE
MOLINE, Illinois (February 28, 2002) -- Deere & Company and Woods Equipment Company said today that they would discontinue Alloway Industries, L.L.C. -- a joint venture manufacturing operation in Fargo, North Dakota. Alloway Industries will cease production by July 31, 2002.
Alloway Industries makes hay and forage equipment for John Deere and farm implements for Woods. Woods Equipment Company, of Rockford, Illinois, plans to continue using the Alloway brand, manufacturing Alloway products at other locations. Deere said that most product models branded John Deere by Alloway Industries would be discontinued although production of one model will move to another Deere facility in Ottumwa, Iowa.
The decision to close Alloway Industries affects a workforce of approximately 80 full-time employees, all of whom will be eligible for a comprehensive severance package. Employees were told of the plans to close the facility today.
Deere said it initiated the decision to close Alloway Industries by providing notice to Woods of its intention to resign from the joint venture. Deere said this action is one of several focused on reducing the asset intensity in the company and eliminating excess production capacity.
Deere and Woods formed the Alloway Industries joint venture in 1996. Alloway Industries occupies a 100,000 square foot facility in Fargo. Other John Deere operations in the Fargo area are not impacted by today's announcement. These include Phoenix International in Fargo and AgAir in Valley City.
I have been looking into backhoes and think that for me the Bush Hog backhoes has better dipperstick and bucket digging force.
