Rayovac 2009 Annual Report Download - page 200

Table of Contents
Index to Financial Statements SPECTRUM BRANDS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(In thousands, except per share amounts)
file objections with the bankruptcy court to certain of such claims. This process will continue until those claims that the Company determines to address in
the bankruptcy court are resolved. See Note 2, Voluntary Reorganization Under Chapter 11, for a further description of the Bankruptcy Cases.
The Company does not believe that any other matters or proceedings presently pending will have a material adverse effect on the results of
operations, financial condition, liquidity or cash flow of the Company.
Successor Company’s minimum rent payments under operating leases are recognized on a straight−line basis over the term of the lease. Future
minimum rental commitments under non−cancelable operating leases, principally pertaining to land, buildings and equipment, are as follows:
2010 $ 23,036
2011 20,372
2012 19,177
2013 15,459
2014 11,709
Thereafter 25,959
Total minimum lease payments $ 115,712
All of the leases expire between Fiscal 2010 through September 30, 2018. Successor Company’s total rent expenses were $2,351 for the one month
period ended September 30, 2009. Predecessor Company’s total rental expenses were $22,132, 37,068, and $31,733 for the eleven month period ended
August 30, 2009, Fiscal 2008 and Fiscal 2007, respectively.
(14) Related Party Transactions
On February 3, 2009, the Predecessor Company announced that it reached agreements with Harbinger Capital Partners Master Fund I, Ltd. and Harbinger
Capital Partners Special Situations Fund, L.P., D. E. Shaw Laminar Portfolios, L.L.C. (“Laminar”) and Avenue International Master, L.P., Avenue
Investments, L.P., Avenue Special Situations Fund V, L.P., Avenue Special Situations Fund IV, L.P. and Avenue−CDP Global Opportunities Fund, L.P.
(collectively, the “Avenue Parties”), which, as of that date, in the aggregate, represented approximately 70% of the face value of Spectrum Brands’
outstanding public Senior Subordinated Notes, to pursue a refinancing that, if implemented as proposed, would significantly reduce the Spectrum Brands’
then outstanding debt. Also on February 3, 2009, each of Harbinger Capital Partners Master Fund I, Ltd. and Harbinger Capital Partners Special Situations
Fund, L.P., Laminar and the Avenue Parties holding Spectrum Brands’ then outstanding Senior Subordinated Notes agreed, pursuant to a support agreement
and upon the terms and subject to the conditions in the agreement, to support the plan of reorganization as proposed and, upon receipt of a Bankruptcy Court
approved disclosure statement and when properly solicited to do so, to vote all of their respective claims under the notes in favor of the plan. See Note 2,
Voluntary Reorganization Under Chapter 11, for a further description of the Bankruptcy Cases.
Pursuant to the Plan, as of the Effective Date, Harbinger Capital Partners Master Fund I, Ltd., Harbinger Capital Partners Special Situations Fund,
L.P. and Global Opportunities Breakaway Ltd. (collectively, the “Harbinger Parties”), Laminar and the Avenue Parties were issued shares of common stock
of reorganized Spectrum Brands, Inc. and became holders of the 12% Notes.
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