It's just a re-org, it happens frequently with overleveraged companies - generally under the guidance of the bankruptcy court who appoints 'administrators' to guide the process. Once the creditors approve the re-org plan, the company normally emerges from bankruptcy. In this case it appears the tier 1 secured creditors took equity (actual ownership) in the company in exchange for their borrowings - IMHO this is a good sign bec/ it indicates that the creditors believe there is value to be realized in the product pipeline if the management team is given some financial room to capitalize on the opportunities!
Some might think of Holley as a 'dead' brand, but hopefully this event will allow them to reinvent themselves with some new products, while still providing service & support to 30+ years of an installed base of loyal customers.
PS: I should write this stuff for a living, that sounds pretty positive!
