Citation emerges from Chapter 11 protection

Citation emerges from Chapter 11 protection

Birmingham, Alabama-based auto industry supplier Citation Corporation announced Tuesday, May 24, 2005, that it has emerged from bankruptcy protection. Citation, whose biggest customers include Ford and Toyota, filed for bankruptcy protection in September 2004, citing rising scrap and steel prices, consumer unwillingness to accept higher prices, and related inability to maintain sufficient operating capital. The company has reportedly decreased its debt from $550 million at the time of filing to $210 million currently. Forecasts show that Citation’s unsecured creditors will most likely get 16 cents on the dollar. Citation was a publicly traded company, but it went private in 2000.