RHI Restructuring to Realign Core Businesses
As part of the restructuring, NARCO, like other entities facing an overwhelming number of asbestos-related claims, has filed a voluntary petition for reorganization under Chapter 11 of the United States Bankruptcy Code. The petition was filed in the U.S. Bankruptcy Court for the Western District of Pennsylvania, in Pittsburgh. NARCO is seeking court approval of a $20 million debtor in possession financing facility, which NARCO believes will provide adequate capital to meet its ongoing obligations to its customers, vendors and employees.
RHI has 24 manufacturing facilities and 2400 employees in the U.S. and Canada. The company will close some facilities in the restructuring process to reduce production capacity and redundancies, but the number and locations haven't been determined. The company expects to announce more specific details in the near future.