A.M. Castle Bankruptcy Plan Effective


A.M. Castle & Co.’s Amended Prepackaged Joint Chapter 11 Plan of Reorganization became effective, and the Company emerged from Chapter 11 protection. The U.S. Bankruptcy Court confirmed the Plan on August 2, 2017.

BankruptcyData’s detailed Plan Summary notes, “Upon emergence from chapter 11, the Reorganized Debtors expect to have outstanding debt primarily consisting of obligations under a contemplated new $75 million asset based revolving credit facility and New Notes that will be issued in an aggregate initial principal amount of up to $167.4 million. Accordingly, the Reorganized Debtors will have a significantly deleveraged and improved balance sheet and a more appropriate capital structure. Moreover, the New Notes will be convertible into shares of New Common Stock pursuant to the terms and conditions set forth in the New Notes Documents.”

A.M. Castle’s president and C.E.O., Steve Scheinkman, comments, “We have successfully and expeditiously completed our financial restructuring, positioning Castle for growth and enabling us to serve our customers and partner with our suppliers more efficiently than we have in the past few financially-challenged years. As anticipated, we have significantly reduced our debt burden and interest expense and now possess a balance sheet competitive to others in the metals service center industry….Equally important, we will also plan to make investments back into Castle to ensure we remain a Company that attracts and builds a robust talent base and fulfilling careers for our employees.”

E.V.P. and C.F.O. Patrick Anderson adds, “Following the effective date of our Plan, our initial annual cash interest expense will be approximately $4 million. Further, even including interest on the new convertible debt held primarily by our shareholders, which will initially be paid “in-kind,” our total yearly interest expense has decreased by nearly 70%, from approximately $36 million per year prior to the restructuring.” This specialty metals’ distributor filed for Chapter 11 protection on June 18, 2017, listing $329 million in pre-petition assets.

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