Shiloh Industries, Inc. Receives Court Approval of “First Day” Motions to Support Business Operations
Obtains Interim Approval to Access Additional Financing
Company’s Operations, including in Asia, Europe and Mexico, Continue as Normal
VALLEY CITY, OHIO, September 02, 2020 – Shiloh Industries, Inc. (NASDAQ: SHLO) (the “Company”)
an environmentally focused global supplier of lightweighting, noise and vibration solutions, today
announced that it has received approvals from the U.S. Bankruptcy Court for the District of Delaware for
all of its “First Day” motions related to the Company’s voluntary Chapter 11 petitions filed on August 30,
The Court granted Shiloh interim approval to access up to $18.1 million of the $123.5 million in committed
debtor-in-possession (“DIP”) financing from its existing lenders, consisting of approximately $23.5 million
new money subfacility and a roll-up of approximately $100 million of commitments under the Company’s
existing revolving credit facility, which, combined with cash generated from the Company’s ongoing
operations, will be used to support the business throughout the sale process. Among other things, the
Court has authorized the Company to continue to pay employee wages and benefits without interruption,
honor customer commitments and otherwise manage its day-to-day operations in the ordinary course
through the court-supervised sale process.
“We are pleased to have received the Court authorization we need to continue our operations during the
sale process,” said Cloyd J. Abruzzo, Interim chief executive officer of Shiloh. “As we move through this
process, we look forward to continuing to serve our customers and meet their needs as the automotive
industry recovers from the COVID-19 pandemic. I would also like to thank our employees for their
continued dedication to our company.”
As previously announced, Shiloh entered into a stalking horse stock and asset purchase agreement with
Grouper Holdings, LLC (“Grouper”), a subsidiary of MiddleGround Capital LLC (“MiddleGround”) pursuant
to which Grouper will acquire substantially all of the Company’s assets, including the equity interests of
certain of the Company’s direct and indirect subsidiaries for an aggregate consideration of $218 million in
cash, subject to working capital and net debt adjustments, and assumption of certain liabilities of the
Company. To facilitate the sale, the Company and certain of its U.S. subsidiaries filed voluntary petitions
under Chapter 11 of the U.S. Bankruptcy Code for the District of Delaware. The transaction is being
undertaken pursuant to Section 363 of the U.S. Bankruptcy Code. Accordingly, MiddleGround, via
Grouper, is serving as the “stalking horse bidder” in a court-supervised sale process, subject to higher or
otherwise better offers, among other conditions.
Shiloh intends to pay its suppliers in full under normal terms for goods and services provided on or after
August 30, 2020. The Company intends to work with its suppliers to minimize any disruption resulting
from the Chapter 11 filing.
Additional information is available on Shiloh’s restructuring website at www.shilohrestructuring.com, or by
calling Shiloh’s Restructuring Hotline at (877) 462-4380 (toll-free in the U.S. and Canada) or (347) 817-
4091 (for calls originating outside the U.S. and Canada). Court documents and additional information
about the court-supervised process are available on a separate website administered by Shiloh’s claims
agent, Prime Clerk, at https://cases.primeclerk.com/shiloh.
Jones Day is serving as legal counsel to Shiloh, Houlihan Lokey Capital Inc. is serving as financial
advisor, and Ernst & Young LLP is serving as restructuring advisor.
Wed, September 2, 2020