Reddi Brake Reaches Agreement With Creditors
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Ventura-based Reddi Brake Supply Corp. has entered into an agreement with its major trade creditors that will allow payment for money owed using a combination of returned inventory and company stock.
As part of the agreement, some of the returned inventory will be credited against the amount owed and some will be exchanged for new inventory of high priority products.
Reddi Brake expects to conclude settlement agreements with its other creditors over the next several weeks. The company has been in discussions with its secured lender, both to allow the inventory return and exchange program, and to provide additional borrowing ability within the framework of its ongoing credit line.
The creditor agreement and other pending changes are expected to provide up to $20 million of new equity to support the company’s informal reorganization, operating recovery and future growth.
Reddi Brake operates 84 outlets in 26 states.
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