Huffy's future secured by Chinese credit insurance firm

The US bicycle and golf brand filed voluntary petitions for relief under Chapter 11 of the US bankruptcy code in October last year. It has now agreed a reorgansisation plan with the China Export & Credit Insurance Corporation, an agency of the Chinese government providing export credit insurance to Chinese exporters, including many of Huffy's suppliers.
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The agreement provides that all of Huffy's pre- petition liabilities will be discharged in exchange for notes and new voting common equity of the reorganised company.

John A. Muskovich, Huffy's CEO and president, stated: "I am pleased to be able to announce this agreement as a positive step towards a consensual Plan of Reorganization which will result in Huffy emerging from bankruptcy later this year. This agreement is a continuing indication of the strong support that Huffy is receiving from its suppliers and the confidence that they have in the long-term viability of this business. We are particularly appreciative of the leadership role of Sinosure (China Export & Credit Insurance Corporation) and our suppliers in China which are members of the Sinosure Group for their support of the company during the bankruptcy period, and we look forward to working closely with them in the future as shareholders."

Zhidong Liang, executive vice president of Sinosure, said: "We look forward to Huffy's emergence from bankruptcy and its future growth as one of America's leading bicycle brands and as a significant golf supplier. Sinosure and Huffy's suppliers in China have played a critical role in Huffy's reorganization, based on the strong business relationship between Huffy and its suppliers and their mutual interest in Huffy's future."

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