Castle A M & Co (fka CTAM)

[doogdilinger]

A.M. Castle Completes Financial Restructuring, Emerges From Chapter 11
Globe Newswire  
August 31, 2017 11:00am  

OAK BROOK, Ill., Aug. 31, 2017 (GLOBE NEWSWIRE) -- A.M. Castle & Co. (OTC:CASLQ) (the "Company" or "Castle"), a global distributor of specialty metal and supply chain solutions, today announced that it has emerged from its voluntary chapter 11 proceedings before the United States Bankruptcy Court for the District of Delaware commenced on June 18, 2017. Having successfully restructured its balance sheet and substantially reduced its debt burden and interest costs under its Amended Prepackaged Joint Chapter 11 Plan of Reorganization, the Company is now poised for growth.

President and CEO Steve Scheinkman commented, "Today, A.M. Castle celebrates a proud step forward that marks a new beginning for our Company. We have successfully and expeditiously completed our financial restructuring, positioning Castle for growth and enabling us to serve our customers and partner with our suppliers more efficiently than we have in the past few financially-challenged years. As anticipated, we have significantly reduced our debt burden and interest expense and now possess a balance sheet competitive to others in the metals service center industry, enabling us to focus on compelling growth opportunities across our business by creating even more value for our customers and supplier partners. Equally important, we will also plan to make investments back into Castle to ensure we remain a Company that attracts and builds a robust talent base and fulfilling careers for our employees."

Scheinkman continued, "This milestone is a testament to the hard work of our employees and our leadership team, as well as the confidence of other stakeholders, all of whom reaffirmed their overwhelming belief in Castle's value proposition throughout the process. Many companies have crumbled under similar circumstances, but Castle has grown. Rumors of our demise were greatly exaggerated, and now, with one of the most competitive balance sheets in the industry, we look forward to regaining our leadership position. Moving forward, we will build on this success by focusing on developing our business, driving innovation for our customers, empowering our branches, and renewing our commitment to our employees and our culture."

Executive Vice President and Chief Financial Officer Patrick Anderson commented, "As previously announced, our financial restructuring has markedly reduced our debt and interest expense. Following the effective date of our Plan, our initial annual cash interest expense will be approximately $4 million. Further, even including interest on the new convertible debt held primarily by our shareholders, which will initially be paid "in-kind," our total yearly interest expense has decreased by nearly 70%, from approximately $36 million per year prior to the restructuring. With this new, improved balance sheet, we will be able to invest further in both organic and strategically acquired revenue growth, capital investments, and innovation for our customers."

Scheinkman concluded, "This journey has been a long one for our employees, our leadership, and all of our stakeholders. We sincerely thank everyone involved for their belief and support through this process. We are excited about what the future holds for Castle and all of our stakeholders with this restructuring now complete."