Diecasting foundry group Pace Industries LLC completed a Chapter 11 bankruptcy restructuring plan, noting it now operates with a stronger balance sheet and "well-positioned to realize the full benefit of its previously initiated operational improvements, as well as additional cost structure improvements." The Arkansas-based chain also named a new chief executive officer, Donald Hampton, Jr., replacing Scott Bull, who held that position for 12 years.
Pace Industries is a full-service diecasting manufacturer, producing aluminum, zinc, and magnesium alloy parts and coordinating multiple different manufacturing capabilities and engineering services from 15 manufacturing plants, including nine diecasting plants and two tool-and-die shops.
In early April, Pace filed a voluntary petition for relief (Chapter 11) with the federal bankruptcy court, agreeing with its senior secured lenders on the terms of a comprehensive financial restructuring plan to deleverage the company’s balance sheet. In its announcement at that time it stated the financial relief anticipated by the debt relief and financial restructuring would allow it to "resume normal-course operations following the COVID-19 outbreak, realize the full benefit of its cost-savings initiatives, and strategic investments recently executed, and continue to serve its customers as a leading fully-integrated provider of diecast aluminum, magnesium and zinc components."
Under the cover of creditor protection, Pace converted existing senior secured notes into 100% of the equity of the reorganized company. The two equity holders now are TCW Group and Cerberus Capital Management L.P., both private equity groups.
"We begin this next chapter for Pace Industries as a financially stronger company, which will enable us to capture the full benefit of the cost-saving initiatives implemented prior to the COVID-19 outbreak as well as new market strategies," Hampton stated. "I am excited to lead Pace Industries forward as we execute on our strategic growth opportunities and continue to harness our market-leading capabilities to deliver for our customers as a fully-integrated provider."
Hampton is the former president of Faurecia Interior Systems – North America, with previous executive experience at Honeywell Intl., Hayes Lemmerz, and Rea Magnet Wire Co. He has over two decades industry experience and "global P&L leadership," Pace noted.