New Hope Network is part of the Informa Markets Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Leiner Health Products Completes Financial Restructuring

CARSON, Calif.--(BUSINESS WIRE)--April 22, 2002--Leiner Health Products today announced that it has consummated its plan of reorganization, following the finalization of a new bank credit facility on Friday. Leiner's plan of reorganization was confirmed by the United States Bankruptcy Court for the District of Delaware on Monday, April 15, 2002. Leiner exited Chapter 11 just 49 days after it filed its petition on February 28, 2002.

"We are very excited that we have successfully completed our financial restructuring and can now focus on building our business and enhancing our leadership in this industry," said Robert Kaminski, chief executive officer of Leiner. "Combined with our operational reengineering, Leiner has a reduced debt load, a significantly improved capital structure, far more efficient operations and is very well positioned for strong future growth."

Kaminski continued, "We want to thank our customers and suppliers for their support during this process and we look forward to further building our relationship with them. I also want to single out the men and women of Leiner, whose dedication and hard work have been a vital part of our success."

As previously announced, Leiner filed its prepackaged plan of reorganization on February 28, 2002 with the overwhelming support of its creditors. Under the plan of reorganization, holders of Leiner's 9.625% Senior Subordinated Notes due June 30, 2007, received a combination of $15 million in cash and $7 million of newly created preferred stock in exchange for their Notes, an exchange that reduced Leiner's indebtedness by $85 million. Leiner's existing senior indebtedness has been restructured and remains outstanding. The bank lenders received $7.5 million of newly created preferred stock. A group of investors led by North Castle Partners has invested $20 million in newly created preferred stock of the Company. In addition, Leiner's bank lenders have extended the Company an additional revolving credit facility of up to $20 million. None of the Company's customers, suppliers or other creditors were impaired as a result of the process.

Leiner Health Products Inc., headquartered in Carson, California, is one of America's leading vitamin, mineral, nutritional supplement and OTC pharmaceutical manufacturers. The company markets products under several brand names, including Natures Origin(TM), YourLife(R) and Pharmacist Formula(R). For more information about Leiner Health Products, visit

Hide comments


  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.