<%@LANGUAGE="VBSCRIPT"%> ROCKCRAWLER.com - Steel Horse Files Chapter 11
Steel Horse
Steel Horse Files Chapter 11

Compton, 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.

After 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 in operations.

During 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.

We 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.

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