Mark IV Industries Inc. has received court approval for a reorganization plan that paves the way for the Amherst company to exit Chapter 11 bankruptcy protection.

The U.S. Bankruptcy Court for the Southern District of New York confirmed the plan, which had been accepted by an overwhelming majority of Mark IV's creditors, the company said.

Privately held Mark IV entered bankruptcy protection five months ago and anticipates emerging from Chapter 11 in October.

Mark IV said in a statement it will reduce debt obligations on its balance sheet from approximately $1.2 billion to approximately $400 million. The company's senior-secured lenders will receive an 88 percent equity stake, before any allocation to management, and the remaining 12 percent would be shared by its unsecured creditors. Current equity in Mark IV will be cancelled and no distribution will be provided to current equity holders under the plan.

The company also announced that Jim Orchard and Mark Barberio will be co-chief executive officers of Mark IV. Orchard served as the company's interim chief executive officer during the restructuring. Barberio, who also continues as Mark IV's chief financial officer, joined the company in 1985.

"We are in a significantly stronger financial position today than we have been in the last 9 years," said Barberio. "Now with a more rational capital structure, we look forward to not only providing the innovation, products and services our customers worldwide have come to expect from Mark IV, but also a future in which we can re-invest in our global businesses and continue to grow."

Mark IV manufactures systems and components for vehicles, transportation infrastructure and equipment. The company employs 4,200 people across 18 manufacturing and 20 distribution/technical centers in 16 countries.