ROHN files Chapter 11 papers
Officials seek sale of company assets
September 17, 2003
By PAUL GORDON
of the Journal Star
PEORIA - About 10 months ago, ROHN Industries Inc. tried several things to
avoid bankruptcy, eventually transferring many of its assets to creditors
and its Peoria manufacturing jobs to Frankfort, Ind.
Those efforts failed, however, as the Peoria-based manufacturer of
telecommunications towers filed for Chapter 11 bankruptcy on Tuesday in the
Southern District of Indiana.
The filing came as ROHN officials are negotiating with another company to
sell its assets. The other company was not identified.
"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,"
said CEO Horace Ward in a prepared statement.
Ward could not be reached for further comment.
The company also announced Stephen Gorman and Jordan Roderick resigned from
ROHN's board of directors, leaving Ward the sole director.
Such moves sometimes are part of sale agreements between a financially
struggling company and its proposed buyer.
A ROHN news release said the company entered into a $9.5 million,
debtor-in-possession line of credit agreement with its lenders, subject to
approval of the bankruptcy court. The new line of credit will include money
rolled over from its existing line of credit.
ROHN will retain possession of its assets - including buildings at 6718 W.
Plank Road in Peoria and its Frankfort plant - and continue in business
pending the sale.
"The objective of the Chapter 11 proceeding is to maximize recovery to
creditors by facilitating an orderly sale of assets," the company said. "The
company is currently in discussions with an unrelated third party regarding
a proposed sale of the assets of the company."
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