Friede Goldman Halter Files Chapter 11
Friede Goldman Halter, Inc., announced that it had filed a petition for relief under Chapter 11 of the United States Bankruptcy Code. The petition, which allows for reorganization of the Company's debts, was filed in the Bankruptcy Court of the Southern District of Mississippi. Thirty-one (31) subsidiaries of the Company that are co-borrowers or guarantors under the Company's Amended and Restated Loan and Security Agreement, dated October 24, 2000, (the "Facility") plan to file petitions for reorganization under Chapter 11.
Concurrent with these filings, the Company is initiating efforts to achieve a comprehensive restructuring of its obligations with all its creditors. The objective of this restructuring will be to position the Company to emerge from Chapter 11 with an improved capital structure and sufficient resources to carry on its business.
At this time, the Company believes a filing is in the best interest of its employees, creditors, customers, and shareholders.