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BizVerify |
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| Shanghai Donghuang Forging Co., Ltd. |
| Verified By : Huaxia D&B |
| Verified Date : 2011-11-22 |
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| Recession reports - PTC Alliance files for Chapter 11 Protection |
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Citing the steep general international economic decline that resulted in mounting cash losses over the last ten month period, PTC Alliance, a leading manufacturer and marketer of welded and cold drawn mechanical steel tubing and tubular shapes, fabricated parts, precision components and chrome plated rod, today filed voluntary petitions under Chapter 11 of the US Bankruptcy Code. The filing includes the parent company and its U.S. subsidiaries. None of the company's non US subsidiaries are included as debtors.
The filing took place in the US Bankruptcy Court, District of Delaware.
The company also announced that it has entered into an asset purchase agreement with funds managed by Black Diamond Capital Management LLC, the pre petition term lenders, to act as a "stalking horse" bidder for the sale of substantially all of the company's assets pursuant to Section 363 of the US Bankruptcy Code. The bid will be subject to higher and better offers, and the ultimate sale will be approved by the Bankruptcy Court.
Mr Peter Whiting chairman & CEO of PTC Alliance said that “We are taking this action today so that we can continue to support our customers worldwide. We expect to continue business as usual throughout the Chapter 11 process. We do not expect any delays or interruptions in serving the needs of our customers and will continue to pay our suppliers and vendors for goods and services received during this period.”
Mr Stephen Deckoff Managing Principal of Black Diamond Capital Management LLC stated "Our proposed transaction will establish a new corporation with a stronger balance sheet and lower cost structure that it will be well positioned now and in the future to provide PTC's customers with the highest quality tubing products and precision components."
The company has obtained a commitment for up to USD 15 million in debtor-in-possession financing, which together with cash from operations, will be used to fund operating expenses during the Chapter 11 pending the closing of the sale.
PTC Alliance is a leading manufacturer and marketer of welded and cold drawn mechanical steel tubing and tubular shapes, fabricated parts, precision components and chrome-plated rod. The company's major customers include steel service centers, automotive and truck manufacturers, construction and agricultural equipment OEMs and machinery and appliance makers. With eleven strategically located factories in North America and a manufacturing complex in Germany, PTC Alliance is able to minimize lead time, shipping distance and expense for its customers.
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