Holley Performance Products says it is planning to file bankruptcy in an effort to convert a majority of the company's debt into equity.
"This is a prudent financial move on the part of our owners and investors," says Thomas W. Tomlinson, the company's CFO. "The actual conversion of debt into equity will be accomplished through a prepackaged bankruptcy filing that will cancel out the old capital structure and formally establish the new one."
Tomlinson says customers, suppliers and employees will not be affected. He says it will be "business as usual" at Holley throughout the restructuring process, which is expected to be completed in as few as 45 days.
Holley's family of companies in the performance market includes Holley, Weiand, Hooker, FlowTech, Earl's and NOS. The company is headquartered in Bowling Green, KY.