Atchison Casting Corp. files for bankruptcy.Atchison Casting Corp., Atchison, Kansas  , announced that it and its U.S. subsidiaries (except The G&C Foundry Co., Sandusky, Ohio Sandusky is a city in the U.S. state of Ohio and the county seat of Erie CountyGR6. The municipality is located in northern Ohio and is situated on the shores of Lake Erie, half-way between Toledo to the west and Cleveland to the east. ) have filed a voluntary petition for reorganization. The firm's Canadian and U.K. operations have not been included in any bankruptcy filings and are operating as usual. "Over the past several months the management of the Atchison Casting Corp. has worked diligently with our bankers to develop a debt restructuring Debt Restructuring A method used by companies with outstanding debt obligations to alter the terms of the debt agreements in order to achieve some advantage. Notes: plan that would lead to an extension of the credit agreement to September 2004," said Tom Armstrong Tom Armstrong is an American cartoonist born in Indiana and a graduate of the University of Evansville. He was the original artist on the newspaper comic strip John Darling, which he drew from 1980 through 1984. , president of Atchison Casting. "Unfortunately, we have been unable to reach an agreement and are now filing a voluntary petition for Chapter 11 reorganization with the U.S. Bankruptcy Court bankruptcy court n. the specialized Federal court in which bankruptcy matters under the Federal Bankruptcy Act are conducted. There are several bankruptcy courts in each state, and each one's territory covers several counties. . The firm has secured a $7.5 million debtor--in-possession financing facility. This financing will be used to supplement Atchison's existing cash flow during the reorganization process and ensure post-petition payment of payroll and benefits, payments to vendors, and other normal operating costs. Atchison Casting intends to sell its remaining businesses and assets for the highest value. According to the firm, it is unlikely that there will be any funds left for stockholders. "After our long struggle to survive against the backdrop of the recession in the manufacturing sector, too much debt and related costs, and closures and sales of unprofitable operations, among other things, this filing should enable our core operations to continue to operate while we offer them for sale," said Kevin McDermed, chief financial officer. "This provides the best opportunity for our employees, customers, vendors and creditors going forward. To continue to burden our core operations with these costs would ultimately lead to their deterioration." Atchison Casting produces iron, steel and nonferrous castings for a wide variety of equipment, capital goods Capital Goods Any goods used by an organization to produce other goods. Notes: Examples of capital goods include office buildings, equipment, and machinery. See also: Capital Expenditure, Disinvestment Capital goods and consumer markets. |
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