Amcast files for Chapter 11 protection.As a means to implement financial restructuring, Amcast Industrial Corp., Dayton, Ohio Dayton is a city in southwestern Ohio, United States. It is the county seat and largest city of Montgomery County. As of the 2005 census estimate, the population of Dayton was 158,873. , and several of its subsidiary companies filed for Chapter 11 bankruptcy protection in November. This protection comes in lieu of an agreement Amcast reached with its bank representatives and note holders to help reduce debt by $30 million. The company already received from its lenders a commitment of up to $15 million in debtor-in-possession financing Debtor-in-possession financing New debt obtained by a firm during the Chapter 11 bankruptcy process, Federal Bankruptcy Rule 4001 (c)(1). This financing is unique because it is secured, that is, it has priority over existing debt, equity and other claims. , which, when combined with revenue from operations, is expected to support the company through the Chapter 11 process. "We believe this agreement achieves what we set out to do at the outset, namely to improve our prospects for long-term success," said Byron Pond, chairman, president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . "This restructuring will allow Amcast to take full advantage of the fundamental strength of our business and continue to be a valuable business partner to our customers and suppliers." Under the terms of the agreement, Amcast's senior lenders and note holders have agreed to exchange $109 million of existing senior debt for a combination of $75 million in senior and subordinated debt Subordinated Debt A loan (or security) that ranks below other loans (or securities) with regard to claims on assets or earnings. Also known as "junior security" or "subordinated loan". and all of the equity in the reorganized re·or·gan·ize v. re·or·gan·ized, re·or·gan·iz·ing, re·or·gan·iz·es v.tr. To organize again or anew. v.intr. To undergo or effect changes in organization. company. Pond said he expects the company to continue its daily operations. |
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