In a press release, Illinois-based A.M. Castle & Co. informed investors it filed for Chapter 11 reorganization with a repayment plan for its creditors, of which 98 percent support the restructuring plan.
Attaching the plan with the bankruptcy filing will allow the company to move faster through the court process; it aims to emerge from bankruptcy in approximately two months. In the interim, the business will continue to operate as usual and no layoffs are expected.
The court documents list $329 million in debt with top creditors between $2.5-1 million. The plan was approved by 35 creditors listed in its filing which have the option to obtain direct payment or become shareholders in the company. The restructuring will transfer $200 million in debt to stock ownership and allow for a cash infusion of $40 million.
A.M. Castle & Co. is a global distributor of specialty metals and supply chain services and serves customers in various industries, such as oil, gas, aerospace and industrial equipment via 21 metals service centers throughout North America, Europe and Asia.