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Statesman Advises XtraLight Manufacturing, Ltd. in Chapter 11 Reorganization

HOUSTON, TEXAS (September 28, 2018) – Statesman Corporate Finance, LLC (“Statesman”) and SSG Capital Advisors (“SSG”) acted as co- investment bankers to XtraLight Manufacturing, Ltd. (“XtraLight” and/or the “Company”) in the placement of exit financing and restructuring pursuant to a Chapter 11 Plan of Reorganization (the “Plan”) in the U.S. Bankruptcy Court for the Southern District of Texas. The Plan was confirmed and became effective in September 2018.

Founded in 1986 and headquartered in Houston, Texas, XtraLight is an established designer, manufacturer, distributor, and installer of high-performance, energy efficient light emitting diode (“LED”) lighting platforms for both interior and exterior commercial and industrial applications. The products are targeted for applications in several market segments including commercial office and retail, outdoor area lighting, industrial, education, and healthcare applications.

XtraLight filed voluntary Chapter 11 in April, 2018 as the result of litigation that an affiliated entity was involved in, and not as the result of troubled financial performance.  Management determined that a voluntary bankruptcy filing was the best way to bring resolution to a very expensive and distracting matter.  Statesman and SSG were retained shortly after the Company’s filing and assisted the Company in arranging new financing sufficient in amount to fully resolve the litigation, refinance existing debt, and pay all unsecured creditors. Statesman and SSG’s ability to solicit interest from several lenders in an efficient and timely process enabled the Company to maximize value, preserve jobs, maintain the loyalty of vendors and customers, and exit bankruptcy in five months. Unlike many commercial bankruptcies, XtraLight was able to avoid a liquidation or sale of its assets at depressed values and achieve a true Chapter 11 reorganization with new exit financing.

Statesman is the FINRA-licensed broker dealer affiliate of Statesman Business Advisors, LLC. With offices in Houston and Austin, Texas, Statesman is a leading middle-market investment banking firm providing merger and acquisition, capital formation, valuation and other general corporate financial advisory services to middle-market companies. The Statesman team advising on this engagement included Principal Will Jaco, Vice President Peter Chiu, and Associate Philip Rodriguez.

SSG’s professionals have been helping middle market companies and their stakeholders in special situation transactions for over two decades. As a nationally recognized boutique investment banking firm specializing in mergers and acquisitions, restructurings, and private placements. SSG has become the go-to firm for companies facing complex or challenging situations including operational, financial and/or legal challenges and turnarounds, inside and outside of Chapter 11 proceedings. SSG is headquartered in Philadelphia with an office in New York City. The SSG team advising on this engagement included Managing Director Matthew Karlson and Managing Director Mark Chesen.

Texas Capital Bank (TCBI) is a commercial banking institution established in 1998 and headquartered in Dallas, Texas. The bank provides personalized financial services to businesses and individual clients across Texas. The bank’s service areas include business banking, wealth management, private banking, online banking, personal banking, treasury and liquidity, and mortgage business finance. Texas Capital Bank’s business services division offers services in areas of commercial account information, commercial real estate, energy industry banking, financial institutions, financial services for employees. TCBI also offers healthcare banking, investments, leasing, lender finance, equipment financing, term loans, asset-based lending, property management, and SBA lending among others. Texas Capital Bank operates as a wholly owned subsidiary of Texas Capital Bancshares. Texas Capital Bank provided the subject refinancing and Cody Cannon, Senior Vice President serves as relationship manager on the Company’s account.

About the other transaction participants

Legal counsel for XtraLight was Deirdre C. Brown and Melissa A. Haselden with HooverSlovacek, LLP.

Personal counsel to XtraLight’s President was Christopher Murray with Diamond McCarthy LLP.

Legal counsel for Texas Capital Bank was Lynn ButlerReuben D. Rosof and Caleb Rush with Husch Blackwell LLP.