Spectrum to borrow $235M to stay afloat

Spectrum Brands, which filed for bankruptcy this week, said Friday it obtained interim court approval to get new financing to keep its daily operations ongoing.

The court’s approval of borrowing $235 million from the capital markets, the company said in a statement, will help ensure it continues to meet its financial commitments.

Atlanta-based Spectrum listed total debt and pension obligations at $4.4 billion and assets of $10 billion in its Chapter 11 filing.

In its reorganization plan submitted to the U.S. Bankruptcy Court for the Western District of Texas, Spectrum said it reached an agreement with creditors holding 70 percent of its debt.

The plan, if approved by the bankruptcy court, would eliminate $1.05 billion of Spectrum’s bond debt. That debt would be replaced with $200 million in new bonds issuances — or an 80 percent discount — plus new shares of stock in the post-bankruptcy company.

Existing shareholders would be wiped out under the plan, but no job cuts are planned. The bankruptcy does not include Spectrum’s overseas operations, which are separately run.

Spectrum, which makes Rayovac batteries and Remington shaver products, said it expects the reorganization to take four to six months.