[WIARC] Rohn Files for Chapter 11 Protection
Bob Crockett
[email protected]
Wed, 24 Sep 2003 19:01:55 -0500
Press Release Page
ROHN Files for Chapter 11 Protection
September 16, 2003
World Headquarters
6718 W. Plank Rd.
Peoria, IL 61604 USA
Ph: 309-697-4400
FAX: 309-697-5612
FOR IMMEDIATE RELEASE
For Further Information:
Horace Ward
President and Chief Executive Officer
(309) 633-6886
[email protected]
ROHN INDUSTRIES, INC. FILES FOR CHAPTER 11 PROTECTION;
$9.5 MILLION DEBTOR-IN-POSSESSION FINANCING SECURED;=20
BOARD MEMBERS RESIGN
PEORIA, IL, September 16, 2003 =97 ROHN Industries, Inc., (OTCBB: =
ROHN), (the "Company") a provider of infrastructure equipment to the =
telecommunications industry, announced today that the Company and five =
of its direct and indirect subsidiaries have filed voluntary petitions =
for Chapter 11 relief in the United States Bankruptcy Court for the =
Southern District of Indiana (the "Bankruptcy Court").=20
The Company also announced that, concurrent with the Chapter 11 =
filing, it has entered into a $9.5 million debtor-in-possession ("DIP") =
line of credit with the lenders that are party to the Company's Amended =
and Restated Credit Agreement, subject to the approval of the Bankruptcy =
Court, which will include funds that will be rolled forward from the =
Company's current credit facility. Subject to the provisions of the =
Bankruptcy Code, the Company remains in possession of its assets and =
properties, and continues to operate its business. The Company said that =
the objective of the Chapter 11 proceeding is to maximize recovery to =
creditors by facilitating an orderly sale of assets. The Company is =
currently in discussions with an unrelated third party regarding a =
proposed sale of the assets of the Company.=20
Upon the filing of the bankruptcy petition of the Company, but =
following the approval by the Board of Directors of the Chapter 11 =
filing, Stephen Gorman and Jordan Roderick each have resigned from the =
Board of Directors of the Company. Currently, Horace Ward, the Chief =
Executive Officer of the Company, is the only remaining director of the =
Company.
Commenting on today's announcement, Mr. Ward said, "Our immediate =
goal is to stabilize the Company's financial situation and utilize the =
Chapter 11 process to enable the Company to conduct normal business =
operations as the Company works to complete a sale transaction."
The Company has retained the Indianapolis law firm of Ice Miller =
to act as its legal counsel in the bankruptcy proceedings. The Company =
has also retained Silverman Consulting, a national turnaround consulting =
firm.=20
About the Company
The Company is a manufacturer and installer of telecommunications =
infrastructure equipment for the wireless industry. Its products are =
used in cellular, PCS, radio and television broadcast markets. The =
Company=92s products include towers, poles, related accessories and =
antennae mounts. The Company also provides design and construction =
services. The Company has a manufacturing location in Frankfort, IN =
along with offices in Peoria, IL and Mexico City, Mexico.
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Statements in this press release include =93forward-looking =
statements=94 within the meaning of the Securities Exchange Act of 1934, =
the Private Securities Litigation Reform Act of 1995 and other related =
laws, and include, but are not limited to, those statements relating to =
sales and earning expectations, expected demand and other statements of =
outlook. The Company=92s actual results and effects could differ =
materially from those currently anticipated in our forward-looking =
statements. Factors and risks that could cause such differences include, =
but are not limited to: wireless and fiber optic communications industry =
capital spending; the ability of the Company=92s customers to secure =
adequate financing; elections by customers to terminate or delay =
previously placed orders; the effects of competition, particularly on =
pricing and margins; the Company=92s implementation of our growth =
objectives in foreign markets; the Company=92s indebtedness, which could =
restrict its operations, making it more vulnerable to adverse economic =
conditions and making it more difficult for us to implement its business =
strategy; liquidity problems that confront or may confront the Company; =
the Company=92s inability to obtain bonding required for certain =
customer contracts or potential contracts; liabilities arising from an =
engineering problem with the Company=92s internal flange poles and a =
testing and repair program undertaken by the Company in connection with =
that problem; unexpected problems and costs the Company may encounter or =
incur in consolidating our manufacturing operations at its facilities in =
Frankfort, Indiana; the Company=92s Commonwealth of Pennsylvania =
construction project staying on its currently anticipated schedule; and =
regulatory changes affecting the industry in which the Company operates. =
The cautionary statement contained in Exhibit 99.1 to the Company=92s =
Form 10-K for the year ended December 31, 2002 is incorporated herein by =
reference. Forward-looking statements are given as of the date of this =
release and the Company is not undertaking any duty or obligation to =
update these statements publicly as a result of new information, future =
events or otherwise.
=20
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