Constellation Enterprises and nine affiliated Debtors filed for Chapter 11 protection with the U.S. Bankruptcy Court in the District of Delaware, lead case number 16-11213.
The Company, which manufactures various alloy, titanium, aluminum, plastic and other products, is represented by Daniel J. DeFranceschi of Richards, Layton & Finger. Industrial subsidiaries Commercial Metal Forming, Jorgensen Forge Corporation, Columbus Castings, and Zero Manufacturing, which are guarantors and borrowers of the debt held by Constellation Enterprises, are included in the filing. Columbus Castings will temporarily halt production during the Chapter 11 process as it pursues a sale of the business.
According to a corporate release, “The Group has suffered from significant operational issues at Columbus as well as the effects of weakness in the Oil & Gas and Industrial Manufacturing sectors across the Subsidiaries. These issues stressed the Group’s liquidity and challenged a balance sheet already burdened with high leverage. This proceeding will enable Constellation to implement a financial restructuring that will bring its debt in line with current market conditions.”
Donald MacKenzie, Constellation Enterprises’ chief restructuring officer, comments, “The businesses will emerge with a healthier balance sheet and be in a stronger position to meet the needs of their customers.”
A group that includes holders of Constellation Enterprises’ senior secured notes have committed to providing debtor-in-possession financing. In addition, the Noteholders have also provided a bid to purchase substantially all of the assets of Commercial Metal Forming, Jorgensen Forge Corporation and Zero Manufacturing, under Section 363 of the U.S. Bankruptcy Code. This acquisition will allow these businesses to emerge from this process with substantially less debt and position them for long-term success. Constellation Enterprises also received a letter of intent from an interested party for the acquisition of the assets of Columbus Castings under Section 363 of the U.S. Bankruptcy Code.
Read more bankruptcy news.
The post Constellation Enterprises Chapter 11 Petition Filed appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.