Foundry Company Files for Chapter 11

Neenah Enterprises Inc. (NEI), a foundry based in Neenah, Wis., has announced that the company and its subsidiaries have filed voluntary petitions for Chapter 11 in order to consummate a balance sheet restructuring. NEI has also announced that it has reached an agreement in principle with key creditor constituencies on the terms of a plan of reorganization that proposes to reduce NEI’s debt by about $220 million while providing 100 percent recoveries for its suppliers and vendors.

The company also announced that, pending the bankruptcy court’s approval, it has received commitments for up to $140 million in debtor-in-possession financing to fund continuing operations.

“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,” says Robert Ostendorf, Jr., president and CEO of NEI. “We will emerge from this stronger and more financially sound than ever. There is a bright future ahead for NEI.”