CA - Steel Horse Automotive announced the
Company and various subsidiaries have filed voluntary petitions
for reorganization under Chapter 11 of the Bankruptcy Code
on September 6, 2002. In conjunction with the filing, Steel
Horse Automotive has obtained $3 million in debtor-in-possession
(DIP) financing to fund its operations and maintain liquidity
during the restructuring.
careful evaluation, we determined that the Chapter 11 process
will enable Steel Horse Automotive to operate its business
and serve its customers without interruption, while we reorganize
and restructure the company,” said Interim Chief
Executive Officer Mark Barbeau.
Mr. Barbeau noted that the restructuring
will have no impact on the Company’s ability to fulfill
its obligations to customers, and there will be no interruption
the restructuring period and beyond, Steel Horse Automotive
will continue its commitment to provide the highest quality
of product and service that our customers have come to expect,”
Mr. Barbeau said. “Our daily operations will continue
as usual, and vendors will be paid in the ordinary course
for all goods provided and services rendered after the filing.
The DIP financing, approved by the court, provides funding
for post-petition supplier and employee obligations, as
well as the Company’s ongoing operating needs during
the restructuring process.”
Mr. Barbeau said that the Company has already
been in touch with its major vendors and customers, who
have indicated that they will support Steel Horse Automotive
during the restructuring process.
He said employees will continue to be paid
and health and benefit programs will continue without interruption.
Employee holdings in the Company’s 401(k), pension
and other retirement plans are held in trust, where they
are safe, secure and protected by law.
Moving forward, Steel Horse Automotive will
continue to serve its existing customers, renew current
contracts and write new business.
have recognized that in the past, we lost our focus on our
core competencies and, therefore, we have taken the first
step in restructuring the company by discontinuing our import
business,” says Executive Vice President Faith
Barnese. “The decision to reorganize under Chapter
11 was made after exhaustive evaluation of all available
alternatives. While not our first choice, we firmly believe
it is the best path for securing our company’s future.
Even more important, this action provides a means for effectively
separating our company’s present from its past, and
will eventually pave the way for Steel Horse Automotive
to emerge from the restructuring process as a stronger,
more competitive enterprise prepared to meet the demands
of the marketplace.”
Steel Horse Automotive and its subsidiaries
filed voluntary Chapter 11 petitions in the U.S. Bankruptcy
Court for the Central District of California in Los Angeles.