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Dayton Superior files for Chapter 11 protection
1 hour ago
DAYTON, Ohio (AP) — Dayton Superior Corp., which makes products used in concrete construction, said Sunday it filed for Chapter 11 bankruptcy protection and received $165 million in financing to continue its restructuring.
The company said it had hoped to restructure its debt outside of court, but the "unprecedented tight credit markets" led it to believe bankruptcy filing was the best course. It said it hopes to maintain its normal business operations while in bankruptcy, including making payments to its workers and suppliers.
"We intend to fulfill our commitments to our employees, customers and suppliers without interruption while we restructure our debt," Chief Executive Eric R. Zimmerman said in a statement. "It is our goal to emerge from reorganization expeditiously as a stronger company with greater flexibility, lower debt and a sustainable long-term capital structure."
GE Capital, the financial-services unit of General Electric Corp., agreed to provide the $165 million in financing. The new capital — called debtor-in-possession financing — will replace the company's existing $150 million credit facility, Dayton said, and will provide it with short-term cash to continue reorganizing.
The company said its shares will have "little or no value" while under bankruptcy protection and will likely be canceled following its reorganization. It also expects the stock will soon be delisted from the Nasdaq market. Shares of Dayton, which closed Friday at 30 cents, have plunged recently amid its financial troubles. The stock traded above $4 at times last year but has since fallen sharply as the construction market slowed dramatically.
In its filing, Dayton said it listed assets of $286 million against liabilities of $413 million. It made the filing in U.S. Bankruptcy Court in Wilmington, Del.
Copyright © 2009 The Associated Press. All rights reserved.
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