Municipal castings giant Neenah Enterprises Inc., Neenah, Wis., announced it has filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code in order to restructure its balance sheet.

According to a press release issued by the company, Neenah will continue to do business as usual throughout the restructuring process.

“We've been going through efforts to streamline operations and reduce expenses over the last few years, with the intent of keeping sufficient liquidity to move operations forward,” said Robert Ostendorf Jr., the company’s president and chief executive. “We will emerge from this stronger and more financially sound than ever. There is a bright future ahead.”

Neenah, which filed for protection in the U.S. Bankruptcy Court for the District of Delaware, also announced it has reached an agreement in principle with key creditor constituencies on the terms of a plan for reorganization that proposes to reduce its debt by approximately $220 million while providing 100% recoveries for its suppliers and vendors. Neenah said it also has received commitments for up to $140 million in debtor-in-possession financing to fund continuing operations, pending the Bankruptcy Court's approval.

Neenah Enterprises is the indirect parent holding company of Neenah Foundry Co., which along with its subsidiaries manufactures iron castings and steel forgings for the heavy municipal market and selected industrial market segments.
 

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