A.M. Castle Weighs Chapter 11 Reorganization - Modern Distribution Management

Log In

A.M. Castle Weighs Chapter 11 Reorganization

Company's sales down 17 percent in first quarter.

A. M. Castle & Co., Franklin Park, IL, a global distributor of specialty metal and plastic products, has begun soliciting votes on a proposed prepackaged joint Chapter 11 reorganization plan, which the company outlined in an April 7 announcement.

"We believe completing our comprehensive financial restructuring via the plan will limit disruption to the business and minimize certain costs and unfavorable tax results," said CEO Steve Scheinkman. "Further, as previously agreed with more than 92 percent of the company’s secured creditors in the agreement announced on April 7, the plan contemplates that the company will continue to operate in the ordinary course of its business, including timely shipments to customers and payments to vendors within terms."

Other measures A.M. Castle has taken to regain its financial footing include new employment agreements with key executives.

The company also reported sales for the first quarter of $135.9 million, down 17 percent year-over-year. The company reported a loss of $13.5 million for the quarter, compared to a loss of $36.9 million the same quarter a year ago.

Share this article

About the Author
Recommended Reading
Leave a Reply

Leave a Comment

Sign Up for the MDM Update Newsletter

The MDM update newsletter is your best source for news and trends in the wholesale distribution industry.

Get the MDM Update Newsletter

Wholesale distribution news and trends delivered right to your inbox.

Sign-up for our free newsletter and get:

  • Up-to-date news in a quick-to-read format
  • Free access to webcasts, podcasts and live events
  • Exclusive whitepapers, research and reports
  • And more!


articles left

Want more Premium content from MDM?

Subscribe today and get:

  • New issues twice each month
  • Unlimited access to mdm.com, including 10+ years of archived data
  • Current trends analysis, market data and economic updates
  • Discounts on select store products and events

Subscribe to continue reading

MDM Premium Subscribers get:

  • Unlimited access to MDM.com
  • 1 year digital subscription, with new issues twice a month
  • Trends analysis, market data and quarterly economic updates
  • Deals on select store products and events



You have one free article remaining

Subscribe to MDM Premium to get unlimited access. Your subscription includes:

  • Two new issues a month
  • Access to 10+ years of archived data on mdm.com
  • Quarterly economic updates, trends analysis and market data
  • Store and event discounts

To continue reading, you must be an MDM Premium subscriber.

Join other distribution executives who use MDM Premium to optimize their business. Our insights and analysis help you enter the right new markets, turbocharge your sales and marketing efforts, identify business partners that help you scale, and stay ahead of your competitors.

Register for full access

By providing your email, you agree to receive announcements from us and our partners for our newsletter, events, surveys, and partner resources per MDM Terms & Conditions. You can withdraw consent at any time.

Learn More about Custom Reports

Request a Market Prospector Demo

  • This field is for validation purposes and should be left unchanged.