US rental giant Maxim Crane Works gained approval from the US Bankruptcy Court on 30 December for its plan of reorganisation. This means that it can now come out of Chapter 11 bankruptcy protection with a reorganised financial structure.
The new Maxim will have consolidated debts of $280m, instead of the $700m debts it had before. Banks to which it owed the money, such as Bank of America and Goldman Sachs, will now own the company.
‘This achievement is attributable to the loyalty of our customers, the professionalism and dedication of our employees, and the commitment and support of our creditor groups,’ said chief executive officer Art Innamorato. ‘We accomplished what we set out to do at the outset of our Chapter 11 restructuring, just six months ago. We have substantially decreased our long-term debt while continuing to provide our customers with the highest possible levels of safety and service in the heavy equipment rental industry.’
Maxim has also secured a $50m revolving credit facility from Goldman Sachs. ‘This exit financing will provide the company with sufficient liquidity to continue to meet our financial requirements and grow our business in the coming years,’ Innamorato claimed.
Maxim filed its voluntary petition in the US Bankruptcy Court for the Western district of Pennsylvania in Pittsburgh on 14 June 2004. It now expects to emerge from Chapter 11 early this year.
