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Real Industry Plan Effective

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Real Industry’s Plan of Reorganization became effective and the Company emerged from Chapter 11 protection, with a new name: “Elah Holdings.” The U.S. Bankruptcy Court confirmed the plan on May 02, 2018, and the revisions are confirmed along with the effective order. As noted in the filings with the SEC, “As of the Effective Date, the Reorganized Company issued shares of New Common Stock as follows: (i) an aggregate 49% to the SPA Investors under the SPA for aggregate consideration of $17.5 million, sourced from the contributed capital of the SPA Investors and (ii) 31% to Aleris under the RI Plan in exchange for the cancellation of and settlement of their interest in the Series B Preferred Stock and related accrued dividends, along with the Company’s payment of $2 million.

Such issuances were in an aggregate amount equal to 80% of the outstanding shares of the New Common Stock as of the Effective Date….As of the Effective Date, the Reorganized Company has entered into a Securities Purchase Agreement (the ‘SPA’) with 210/RELY Partners, LP (an affiliate of 210 Capital LLC; the ‘210 Investor’) and Goldman Sachs BDC, Goldman Sachs Private Middle Market Credit LLC, and Goldman Sachs Middle Market Lending Corp. (the Goldman Sachs entities, collectively, the ‘GSAM Investors’, and with the 210 Investor, the ‘SPA Investors’). Under the SPA, the Reorganized Company has issued the number of shares, in the aggregate, that is equal to 49% of the outstanding shares of New Common Stock (approximately 362,000 shares) for an aggregate purchase price of $17.5 million.

The amount of outstanding principal and accrued and unpaid interest on the DIP Facility was applied against the aggregate purchase price and deemed paid in connection with the purchase, and the SPA Investors paid an aggregate cash amount of $12.0 million for the remaining portion of the purchase price. The 210 Investor has purchased approximately 181,000 shares, and Goldman Sachs BDC, Goldman Sachs Private Middle Market Credit LLC, and Goldman Sachs Middle Market Lending Corp. have purchased approximately 46,000, 69,000 and 65,000 shares, respectively. The proceeds of the sale of these shares of New Common Stock will fund payments to the Company’s creditors, fees and expenses incidental to the Company’s Chapter 11 Proceedings, the $2 million cash settlement to Aleris and going forward, the Reorganized Company’s operations and strategic activities.” This aluminium processor filed for Chapter 11 protection on November 17, 2017, listing more than $645 million in pre-petition assets.

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