Maxim's Reorganization Plan Supported by Key Stakeholders

November 15, 2004 • Maxim Crane Works, Pittsburgh, Pa., announced last week that the U.S. Bankruptcy Court has approved the company's request to suspend a marketing process to explore a potential bidding process mandated at the October 18 hearing. The creditor's committee joined the company in making that request because it also supports a reorganization plan as the best alternative for all parties. The company mailed a solicitation package to each creditor eligible to vote, and they have until December 20 to return their ballots. The court set the confirmation hearing for December 30.

 

"Having achieved this important milestone, we are continuing to work with Goldman Sachs to complete our exit financing,” Arthur Innamorato, chief executive officer of Maxim Crane Works, said in a company statement. “We are optimistic Maxim Crane will emerge from Chapter 11 early next year with a significantly de-leveraged capital structure, positive cash flow, and a well-structured financing package that will allow the company to grow and prosper in the coming years."

 

Maxim Crane Works filed its voluntary petition in the U.S. Bankruptcy Court for the Western district of Pennsylvania in June after becoming overleveraged from 11 acquisitions the company made between 1999 and 2001.