RHI Moves Forward with Announced Restructuring
RHI Refractories Holding Co. recently announced that three of its businesses, Global Industrial Technologies, Inc. (GIT), Harbison-Walker Refractories Co., and A.P. Green Industries, Inc., as well as a number of their subsidiaries, have filed voluntary petitions for reorganization under Chapter 11 of the United States Bankruptcy Code. RHI said the Chapter 11 filings were necessary to help the businesses manage through the current severe economic climate and the meteoric rise in the number of asbestos-related legal claims filed against Harbison-Walker and A.P. Green. The petitions were filed in the U. S. Bankruptcy Court for the Western District of Pennsylvania. North American Refractories Co. (NARCO) previously filed Chapter 11 on January 4, 2002. GIT, Harbison-Walker and A.P. Green are seeking court approval of a new $35 million debtor in possession financing facility that they believe would provide adequate capital to these businesses to meet future obligations to customers, vendors and employees. This facility is in addition to the $20 million debtor in possession financing facility obtained by NARCO, which has received interim court approval. To date, the company has taken steps to reduce the workforce at its North American businesses by approximately 20% through layoffs and through the planned closings of A.P. Green's facility in Mexico, Mo.; and NARCO's facility in Cincinnati, Ohio. Additionally, NARCO's facilities in Ione and Indian Hill, Calif., will also be closed or sold in the near future.