June 21, 2017
Castle Begins Bankruptcy Proceedings
A.M. Castle & Co., Oak Brook, Ill., has commenced voluntary Chapter 11 bankruptcy proceedings with the United States Bankruptcy Court in Delaware. As previously announced, the company immediately filed a prepackaged Joint Chapter 11 Plan of Reorganization.
The bankruptcy court will consider the plan, which is expected to enable the company to complete its financial restructuring later this summer, likely within approximately 45 to 60 days.
Before commencing the proceedings, Castle solicited acceptances of the plan from its secured creditors entitled to vote on the plan. Of those voting, 98.32 percent of the secured creditors by dollar value supported the plan.
“This filing testifies to the support of our secured creditors and is the next critical step in returning A.M. Castle to industry leadership. Our creditors’ overwhelming approval of the plan demonstrates their belief this is the right path forward for Castle. We continue to proceed according to the financial restructuring plan we outlined on April 7, and we are optimistic that the court will approve our plan, enabling Castle to emerge financially stronger and better positioned to deliver on our promise of growing our partnerships with our vendors and improving our service to our customers,” says Steve Scheinkman, president and CEO.