Neenah Enterprises Inc., the parent of Neenah Foundry Co., has filed for bankruptcy and will seek to reorganize under Chapter 11 of the U.S. Bankruptcy Code. The Chapter 11 claim covers NEI and 17 affiliates. In the filing, Neenah indicates its assets are valued at $286.6 million and its debts total $449.1 million, as of Sept. 30, 2009.
NEI indicated it has an agreement in principal with “key creditor constituencies” in a plan to reduce overall debt by approximately $220 million, while promising 100% recovery for suppliers and vendors.
Also, it said it has arranged debtor-in-possession financing totaling $140 million that will provide it with the capital to conduct "business as usual," including meeting payroll and paying suppliers.
"We've been going through efforts to streamline operations and reduce expenses over the last few years, with the intent of keeping sufficient liquidity to move operations forward," stated Robert E. Ostendorf, Jr., NEI president and CEO. "We will emerge from this stronger and more financially sound than ever."
Neenah produces a range of gray and ductile iron castings and steel forgings for municipal and industrial markets.
Chapter 11 for Neenah Enterprises
Ferrous foundry will continue business as usual, while reducing debt according to creditor agreement