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Pace Industries LLC of Fayetteville announced Tuesday that it has emerged from Chapter 11 bankruptcy protection and completed its financial restructuring plan.
The company, which handles aluminum, zinc and magnesium die casting, filed for bankruptcy April 13, estimating liabilities of between $100 million and $150 million. At the time, it said the move will “give the Company the financial foundation necessary to resume normal-course operations following the COVID-19 outbreak.”
In March, the company idled operations in Harrison and Fayetteville, putting nearly 600 workers on the sidelines, as the economic effects of the COVID-19 outbreak began to weigh on operations. In April, the company said it was temporarily shutting its Muskegon, Michigan, plant for about 6 months and laying off about 450 people, according to Bloomberg Law.
On Tuesday, the company said it had implemented its reorganization plan, which was confirmed by the U.S. Bankruptcy Court for the District of Delaware on May 29. The company said it met all commitments to stakeholders throughout the Chapter 11 process.
The company said that, as part of its reorganization plan, it named Donald (Donnie) Hampton Jr. as chief executive officer, replacing former CEO Scott Bull, a 41-year veteran of the company who spent the last 12 years as chief executive. It also converted its existing senior secured notes into 100% of the equity of the reorganized company.
“We begin this next chapter for Pace Industries as a financially stronger company, which will enable us to capture the full benefit of the cost-saving initiatives implemented prior to the COVID-19 outbreak as well as new market strategies,” Hampton said in a news release. “I am excited to lead Pace Industries forward as we execute on our strategic growth opportunities and continue to harness our market-leading capabilities to deliver for our customers as a fully-integrated provider.”
The company said Bull will advise Hampton during the leadership transition.
“Pace Industries has a bright future ahead of it, and I am confident handing the reins to Donnie, who I know will do an outstanding job leading the Company,” Bull said. “He is committed to maintaining the same energy with which Pace Industries serves its customers and provides high-quality products to meet their unique needs. Donnie’s experience and leadership will help the Company execute on its strategy and position Pace Industries for success.”
The company said it plans to build on its position in key industries and expand in growth markets.
Documents related to the reorganization are available here.
The company was founded in 1970 in Harrison and now has operations in eight states. It said its operations in Mexico were unaffected by the bankruptcy filing.