KPS makes controlling investment in New Flyer

The KPS Special Situations Fund LP made a controlling investment, through an affiliate, in New Flyer Industries Ltd. pursuant to a multi-stakeholder recapitalization and restructuring of the company. The transaction is the culmination of nearly one year of restructuring efforts at New Flyer and involved the participation of virtually all of the company's primary stakeholders. KPS invested about $28 million of equity in the transaction and the province of Manitoba invested about $13 million in the form of a subordinated loan. All of the net proceeds invested by KPS and the province will be retained in the company to recapitalize its balance sheet and to fund normal operations. New Flyer's founding shareholder, Jan den Oudsten, will retain a minority stake in New Flyer. He will stay on as the company's non-executive chairman and will be involved in certain special projects. A new chief executive officer will be named shortly.