Posted May 3, 2010
Alamo Iron Works to sell to IDG
Texas-based industrial distributor Alamo Iron Works, which recently filed for Chapter 11 bankruptcy protection, will sell to Industrial Distribution Group when it comes out of bankruptcy protection.
In a press release addressed to customers and posted on its Web site, the company said the decision to enter bankruptcy was not taken lightly, but was done in the "best interest of all parties involved with the company."
"We have recently entered into an agreement (subject to Bankruptcy Court approval) to sell substantially all of our assets to Industrial Distribution Group, a national/international distributor, with headquarters in Charlotte, N.C."
The statement was signed by Alamo Iron Works president Tony Koch.
IDG is owned by Texas-based investment group Luther King Capital Management, which will continue to operate the business as Alamo Iron Works, a division of IDG.
"In order to bring the sale process to a conclusion as soon as possible, we elected to file bankruptcy proceedings now and to request the Court to schedule a sale process that will conclude in late May or early June 2010," the statement said.
Koch added that the company has enough cash to see it through the sale process and has received a commitment for post-petition financing.
"We expect this post-petition financing to be sufficient to provide adequate funding for all trade and employee obligations incurred after the filing, as well as the company's ongoing operating needs during the sales process. Equally important, this financing will provide vendors with the added assurance that they will be paid for goods and services we purchase from them after the date of filing (April 5, 2010)."
In its bankruptcy filing, the company listed $18.1 million in assets and about $19.4 million in liabilities, including almost $174,000 owed to the Bexar County tax assessor-collector's office, according to a story on My SA Business.
