CST Industries (f/k/a Aquastore, Tec Tank, Silos & Reclaimers and Engineered Storage Products) and two affiliated Debtors filed for Chapter 11 protection with the U.S. Bankruptcy Court in the Southern District of New York, lead case number 17-11292 (CST Industries Holdings). The Company, which designs and supplies storage tanks, is represented by Jeremy W. Ryan of Potter Anderson & Corroon. The Company has non-Debtor affiliates in the United Kingdom and Singapore.
According to documents filed with the Court, “CST has a strong business with a first-class product line. It also has an unsustainable capital structure because of the compounding and PIK features of its obligations under the A&R Mezzanine Purchase Agreement. This case became necessary because of a lack of liquidity, in turn caused by a chain of events put into motion by one of CST’s large unsecured creditors, who rejected several attractive, formal letters of intent from third parties to purchase CST during a sale process that began in February 2016.”
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