ABN Emerges From Bankruptcy
ENGLEWOOD CLIFFS, NJ—American Banknote (ABN), which traces its roots to 1795 and Paul Revere as an original printer of United States currency, has emerged from bankruptcy protection for the first time since 1991.
Under the terms of the reorganization, American Bank-note emerges with a restructured balance sheet, featuring a reduction of debt of more than $1 million (including accrued, but unpaid, interest) and a significant increase in shareholder equity.
"We are very pleased to leave the bankruptcy behind us, and to emerge with strengthened resources and liquidity," says CFO Patrick Gentile.
Steve Singer, American Bank-note CEO, adds that with the bankruptcy behind them, the company is free to concentrate on the future. "These are really exciting times for us at ABN, as we are finally able to focus exclusively on our operating businesses. There remain many real challenges ahead. . . However, with our new capital structure, we believe that there is the potential to build something special here."
Following the company's emergence from bankruptcy, its board of directors recently authorized management to repurchase up to $15 million face amount of its outstanding 103⁄8 percent debentures at a discount to par value, either in the open market or through privately negotiated block transactions.
American Banknote is a holding company, which operates through its subsidiary companies. Through these subsidiaries, it manufactures, markets and distributes a variety of secure documents, media, fulfillment and reconciliation systems.
These include plastic cards (such as ATM, credit, debit, loyalty and gift cards), smart cards, business forms, electronic printing, documents of identity, checks, money orders, stock and bond certificates, and electronic media.
"Some of these business units are extraordinary assets, with a wealth of history and strong brand-name recognition dating back to 1795," notes Singer.
"More than that, they are highly trusted by governments, banking institutions and industry leaders, positioning them as a secure source of. . . documents, instruments and data of inherent value. We believe that we can build on these resources to enhance value for the company's stakeholders."