Citation Corp., the Birmingham, AL-based forging and foundry holding company, reports it has exited from Chapter 11 bankruptcy and claims it exits court-administered reorganization process "in a stronger position to compete in a difficult marketplace." The company filed for creditor protection last September, citing cash-flow problems it blamed on poor demand for its products and the rising costs of raw materials.
"With the help of our new board of directors, and on the strength of new customer contracts and supplier agreements, we have every reason to be optimistic about Citation's future," stated Citation president and CEO Ed Buker, in a release.
Citation's reorganization plan erased much of the debt the company accumulated during the slow years and months leading up to the bankruptcy filing. Last September, Citation had a debt load of $550 million in secured loans, letters of credit, and trade credit. Now, the reorganized Citation shows a bank debt to $180 million and total debt of $210 million. It also has a credit line worth $80 million, with $50 million available. "This restructuring of our debt will allow us to focus more of our capital on products and process improvements," Buker said.
Creditors approved the reorganization plan on May 2, and the federal bankruptcy court approved it May 18.
Citation's management team has remained in place throughout the process, but a new board of directors has been named. The new chairman is William E. Redmond Jr., who has experience in corporate restructuring and post-bankruptcy management. Also on the board as directors are: Alan E. Antoniewicz, a senior operations executive with experience in construction, mining, and manufacturing; William Allan Hopkins, former president and CEO for Atlas Steels Inc.; Tom S. O'Donoghue, managing partner for Corporate Revitalization Partners LLC; Ronald M. Ruzic, a retired executive vice president and former group president and general manager for Borg-Warner Inc.; and Richard J. Sloan, a retired veteran of the automotive industry who has served as president or managing director of four business units in the U.S. and Europe.
Buker praised the Citation's managers and employees for their efforts to maintain quality, delivery, and cost performance during the reorganization. "We never missed a delivery because of Chapter 11," he said. "Our customers have rewarded our efforts with several significant new contracts that demonstrate their faith in our ability to meet their expectations."