Morris Material Handling, Inc has come out of Chapter 11 bankruptcy protection after having its Reorganisation Plan consummated on 28 September.
The Reorganisation Plan provides for a debt to equity conversion at the US manufacturer of overhead cranes and hoists. Virually all the company’s bank, bondholder, and other prefiling obligations become equity in the reorganised Company. No distribution to Morris’s current shareholders was included in the Reorganisation Plan, and all existing Morris shares were canceled.
A $30m loan facility from Congress Financial Corporation will be used to fund cash costs of exiting Chapter 11 as well as the company’s ongoing operations.
The virtually debt-free capital structure now established will allow the company the flexibility to respond to and take advantage of the changing dynamics of its industry, the company said.
Morris Inc, formerly P&H Material Handling, sold its UK-based international operations to a management team earlier this year. This company, with a factory in Loughborough, UK, and operations in Saudi Arabia, Thailand and Singapore, is called Morris Material Handling Limited.
