A.M. Castle Emerges from Chapter 11
By Metal Center News Staff
on Sep 13, 2017
A.M. Castle says it’s “poised for growth,” following the company’s emergence from voluntary chapter 11 proceedings. The Oak Brook, Ill.-based company announced that it had successfully completed its financial restructuring on Aug. 31 and lowered its debt burden and interest costs under an Amended Prepackaged Joint Chapter 11 Plan of Reorganization.
“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, enabling us to focus on compelling growth opportunities across our business by creating even more value for our customers and supplier partners,” President and CEO Steve Scheinkman says. “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.”
Patrick Anderson, executive vice president and CFO at Castle, says the company’s initial annual cash interest expense will be approximately $4 million. Additionally, Castle’s total yearly interest expense has dropped nearly 70 percent from approximately $36 million per year prior to the restructuring.
“With this new, improved balance sheet, we will be able to invest further in both organic and strategically acquired revenue growth, capital investments, and innovation for our customers,” Anderson says.