Crane rental company Maxim Crane Works announced June 14 it has filed voluntary petitions for reorganization through Chapter 11 of the U.S. Bankruptcy Code. The company said it has already received the prerequisite number of commitments from its senior creditors to confirm a plan of reorganization, and will file the plan and a disclosure statement by mid-summer. Maxim expects to emerge from Chapter 11 during the fourth quarter of this year. Under the terms of the company’s agreement with its senior secured lenders, Maxim’s total debt will be reduced by approximately $450 million from about $700 million, and the senior secured lenders will receive the majority of the equity in the company. The company said it has received a commitment for up to $70 million in debtor-in-possession financing from a group of lenders led by Goldman Sachs and Fleet Boston. The money would be used to fund post-petition operating expenses and supplier and employee obligations.
Maxim Crane Works files for Chapter 11 reorganization
July 6, 2004