The following information comes from a Holley Press Release.

Holley Performance Products announced on Feb. 11 that its owners and investors have overwhelmingly approved a plan to dramatically enhance the company's capital structure by converting a majority of the company's debt into equity.

"This is a prudent financial move on the part of our owners and investors," said Thomas W. Tomlinson, the company's Chief Financial Officer.

"It tremendously strengthens our company's financial position and provides substantial flexibility to invest in our future. This will allow the company to realize its full growth potential and will maximize the value we can return to our investors. The growth potential will maximize the value we can return to our investors. The actual conversion of debt into equity will be accomplished through a prepackaged bankruptcy filing that will cancel out the old capital structure and formally establish the new one. Customers, suppliers and employees will not be affected."

Mr. Tomlinson emphasized that it will be "business as usual" at Holley throughout the restructuring process which is expected to be completed in as few as 45 days.

"We are very pleased with the transformation that has taken place here at Holley over the last several years," stated Holley CEO, James D. Wiggins.

"Today, Holley is a lean and focused enterprise with strong customer relationships, significant technological capabilities and diversified revenue sources. We have established a good track record of profitability and growth in enterprise value. This restructuring represents the culmination of tremendous effort on the part of the team at Holley, and we are excited to share news of this successful program with you."

Holley is a leader in the performance engine market, and is used throughout the world in racing, street, marine and powersports.

Holley's family of companies in the performance market includes Holley, Weiand, Hooker, FlowTech, Earl's and NOS.

For more information, click here to visit the Holley Performance Products website.