5/8/2008
Court Approves SIRVA’s Plan of Reorganization
Paves Way for SIRVA, Subsidiary Brands Allied and northAmerican to Emerge from Chapter 11
CHICAGO, May 7, 2008 — SIRVA, Inc. (SIRV.PK), a global relocation services provider, announced that Judge James M. Peck of the U.S. Bankruptcy Court for the Southern District of New York today approved the Company’s pre-packaged Chapter 11 Plan of Reorganization (“Plan”), clearing the way for SIRVA and its subsidiaries to emerge from Chapter 11 in short order.
“As a result of our financial restructuring, SIRVA and all of our subsidiaries, including Allied and northAmerican, now have a significantly stronger financial foundation,” said Robert W. Tieken, chief executive officer. “The balance sheet recapitalization we undertook has reduced the Company’s debt and interest expense, enhancing our ability to compete in the moving and relocation markets and positioning SIRVA for long-term success.”
On February 5, 2008, SIRVA and most of its domestic subsidiaries filed voluntary Chapter 11 petitions. The Court’s confirmation of the Plan, which had already received overwhelming support from the Company’s secured lenders, allows SIRVA to implement its restructuring and recapitalization. Specifically, the Plan reduces SIRVA’s outstanding bank debt by approximately $200 million and annual cash interest expense by approximately $40 million.
At the time of the Chapter 11 filing, SIRVA entered into a $150 million debtor-in-possession (“DIP”) financing facility with members of its pre-petition lender group. Upon emergence, the DIP financing facility will convert into a $215 million senior secured credit facility to fund ongoing operations and borrowings. Once its Plan becomes effective, SIRVA will become a private company, and its stock will no longer be publicly traded.
About SIRVA, Inc.
SIRVA, Inc. is a leading provider of relocation solutions to a well-established and diverse customer base around the world. The Company handles all aspects of relocation, including home purchase and home sale services, household goods moving, mortgage services and home closing and settlement services. SIRVA conducts more than 300,000 relocations per year, transferring corporate and government employees along with individual consumers. SIRVA's well-recognized brands include Allied, Allied International, Allied Special Products, DJK Residential, Global, northAmerican, northAmerican International, SIRVA Mortgage, SIRVA Relocation and SIRVA Settlement. More information about SIRVA can be found on the Company's Web site at www.sirva.com.
Forward-Looking Statements
This release includes forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are not historical, but are made based on management’s current expectations and beliefs concerning future developments and their potential effects upon SIRVA, Inc. and its subsidiaries. There can be no assurance that future developments affecting the Company will be those anticipated by management. These forward-looking statements are not a guarantee of future performance and involve risks, uncertainties and other factors. Other factors that could cause actual results to differ materially from these forward-looking statements include risks described under the caption “Risk Factors” and elsewhere in the Company’s 2007 Annual Report. The Company does not intend, and is under no obligation, to update any particular forward-looking statement included in this release.
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Investor Relations
630.468.4715
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