Amcast Industrial Corp., a foundry holding company, reports it has emerged from Chapter 11 bankruptcy, and the reorganized firm will focus its efforts on automotive markets.
Amcast filed for creditor protection on November 30, 2004. The company's secured and unsecured creditors endorsed its reorganization plant, which confirmed by the federal bankruptcy court on July 29. Prior to filing for bankruptcy Amcast sold off a number of plants producing industrial castings, and continued to divest assets during its creditor-protection period. The company’s strategy is to uses its three plants in Fremont, Gas City, and Franklin, IN, to serve automotive customers to serve automotive customers. Its largest customer, General Motors, has renewed its purchase agreements with the reorganized company.
"We believe this is good news for us and for our customers," said Byron O. Pond, former chairman and CEO, and now a company director. "We have addressed the balance sheet issues that led to the decision to reorganize and can now make the necessary investments to ensure our future success. We have some exciting new technologies under development and look forward to sharing them with the market. We are also increasing our marketing presence among both North American and transplant manufacturers. We envision substantial growth in the wheel and aluminum component sectors, facilitated by a more appropriate capital structure and ample liquidity."
According to the reorganization plan, Amcast's pre-petition senior lenders exchanged their former holdings of Amcast senior secured debt for $13 million in senior secured debt, and $51 million in secured subordinated debt. The remaining holdings are now in equity. These institutional lenders now own all of the company's common stock and equity.
Also, a group of the pre-petition lenders will lend Amcast up to $20 million via a new revolving credit agreement. "We are pleased to have this type of strategic commitment to our company from the lenders," said Pond. "They have worked with us throughout the reorganization and understand our business thoroughly; the entire management team appreciates the support received from them and our other constituents, including our suppliers, customers and employees."