Optimism is growing that AMF Bowling Worldwide will emerge from Chapter 11 proceedings shortly, with a confirmation hearing now set for Feb. 1. "AMF is well on the way to emerging from Chapter 11," said Mike Anderson, an AMF spokesman, though he declined to provide a specific date since the confirmation is the last stop in a process that can take up to two months. He confirmed Deutsche Bank is providing a $350 million exit facility, comprising a $50 million revolver, a $100 million term loan "A" and a $200 million term loan "B" to support the exit, but declined to discuss why AMF chose Deutsche Bank.
Citibank, Royal Bank of Scotland, Foothill Capital, SSF Investments and Farallon Capital Group stepped up to provide the $75 million debtor-in-possession facility last summer after AMF ran into trouble (LMW, 7/15). AMF sold a lot of equipment in China, but after the Asian debt crisis, the market collapsed. As the market improved, low-cost local producers stepped in and captured business. A number of bowling center operations on leased premises may be closed. The previous bank facility was led by Citi and Goldman Sachs.