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.
