Jason Industries Provides Update Regarding Strategic Alternatives Process; Executes Forbearance Agreement

Jason Industries, Inc. (OTCQX: JASN) (together with its subsidiaries, “Jason” or “the Company”) currently is considering strategic alternatives to right size its capital structure and position the Company for long-term growth. In that regard, Jason is engaged with an ad hoc group of first lien lenders, which represents more than two-thirds of its outstanding indebtedness under its First Lien Credit Agreement, dated as of June 30, 2014 (the “Ad Hoc Group”), regarding such potential strategic alternatives.

In consideration of this strategic alternative process and efforts to preserve and strengthen liquidity in these unprecedented times, the Company made its quarterly interest and amortization payments to the first lien lenders on March 31, 2020, but has determined not to make its quarterly interest payment on its second lien indebtedness. The Company and members of the Ad Hoc Group have executed a forbearance agreement with respect to that second lien interest payment. And, pursuant to the Company’s intercreditor agreement, second lien lenders are prohibited from exercising certain remedies with respect to this nonpayment for at least 180 days and as set forth more fully in that agreement.

With the support of the Ad Hoc Group, the Company is already engaged in constructive discussions with key stakeholders, including its secured creditors and the Ad Hoc Group, on a plan to strengthen its business, deleverage its balance sheet, and achieve a more sustainable capital structure that supports the Company's long-term business plan and results in long-term value generation for the benefit of its employees, customers, vendors, and other key stakeholders. “Jason’s liquidity position is strong, enabling the Company to engage in constructive discussions and negotiations to achieve a sustainable long-term capital structure, while continuing to serve its customers without interruption and operate without impact to its suppliers. We continue to take prudent actions to preserve liquidity during this unprecedented time resulting from the COVID-19 global pandemic,” stated Brian Kobylinski, chairman and chief executive officer of Jason.

During this process, Moelis & Company LLC has been retained as investment banker to Jason, Kirkland & Ellis LLP has been retained as legal counsel, and AlixPartners has been retained as the Company’s financial advisor. The Ad Hoc Group has retained Weil, Gotshal & Manges LLP as its legal counsel, and Houlihan Lokey Capital, Inc. as its investment banker.

Further inquiries should be directed to investors@jasoninc.com.

Forward Looking Statements

This press release includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as “anticipate,” “believe,” “expect,” “estimate,” “plan,” “guidance,” and “project” and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. Such forward-looking statements with respect to strategies, prospects and other aspects of the Company’s businesses are based on current expectations that are subject to risks and uncertainties. A number of factors could cause actual results or outcomes to differ materially from those indicated by such forward-looking statements. Such factors include, but are not limited to, adverse effects caused by the COVID-19 pandemic; risks associated with the ability to identify and complete strategic alternatives; risks associated with discussions and negotiations with key stakeholders related to the Forbearance Agreement and that our lenders could accelerate our debt after an event of default, including the events of default arising from the missed interest payments due on March 31, 2020; risks associated with the ability to maintain and preserve liquidity due to a variety of reasons, including the level of demand for the Company’s products, volatility in the prices of raw materials and the Company’s ability to pass along increased costs, competition in the Company’s markets, and the Company’s ability to grow and manage growth profitably; the Company’s ability to access additional capital; changes in applicable laws or regulations; the Company’s ability to attract and retain qualified personnel; the impact of proposed and potential regulations related to the U.S. Tax Cuts and Jobs Act; the possibility that the Company may be adversely affected by other economic, business and/or competitive factors; and other risks and uncertainties identified in the Company’s most recent Annual Report on Form 10-K/A, as such may be amended or supplemented by subsequent Quarterly Reports on Form 10-Q or other reports filed with the Securities and Exchange Commission.

Any forward-looking statement made by us in this press release speaks only as of the date on which we make it. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.

About Jason Industries, Inc.

The Company is the parent company to a global family of manufacturing leaders within the finishing and seating markets, including Osborn (Richmond, Ind. and Burgwald, Germany) and Milsco (Milwaukee, Wis.). Headquartered in Milwaukee, Wis., Jason employs more than 1,900 people in 13 countries.