A federal bankruptcy court has approved $140 million in debtor-in-possession financing for Neenah Enterprises Inc., the foundry holding company that filed a Chapter 11 claim on February 3. The package includes a $50-million term loan and a $90-million revolving credit line. Neenah stated the money would finance its normal operations and working-capital requirements as it reorganizes.
According to Neenah Enterprises president and CEO Robert E. Ostendorf Jr., the approval is “a critical milestone in our efforts to quickly emerge from bankruptcy protection with a significantly improved balance sheet."
Neenah Enterprises Inc. is a holding company for several gray and ductile iron foundry operations, including Neenah Foundry Co., in Neenah, WI; Advanced Cast Products in Mercer, PA; Dalton Foundry in Fort Wayne, IN; and Deeter Foundry in Lincoln, NE. Its products serve municipal and various industrial markets.
The group also includes Mercer Forge, in Mercer, PA, which produces carbon and alloy steel forgings from 3 to 100 lb.
When Neenah Enterprises filed for bankruptcy it declared assets valued at $286.6 million and debts totaling $449.1 million, as of Sept. 30, 2009.
The filing was accompanied by an agreement in principal with several “key creditor constituencies” in a plan to reduce overall debt by approximately $220 million, while promising 100% recovery for suppliers and vendors.
"We are pleased to have received the final approval of our DIP facility, and the continued support from our lenders,” stated Ostendorf. “The DIP facility enables us to continue to provide our employees with pay and benefits, make post-petition payments to suppliers, and continue to satisfy our commitments to our customers.”
Court Approves Neenahs DIP Financing
$140 million is call a critical milestone toward bankruptcy reorganization