Boca Raton, July 26--US Plastic Lumber, Corp. has filed voluntary petitions for reorganization under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Southern District of Florida.
The company also announced that it is seeking an order of the Court to obtain DIP financing which it expects will support current operations. This DIP financing will be secured by the company's accounts receivables, inventory, and physical assets.
In November of 2003 US Plastic Lumber announced that it has joined up with Solutia Inc. in Solutia's "Partners for Renewal" program. At that point it has signed a letter of intent to test and incorporate post consumer carpet as a key ingredient for use in its DuraTie composite railroad crossties, Trimax dimensional lumber, and marine timbers.
Chief Financial Officer Michael Schmidt said, "Given our company's current condition, we believe that this action will give us the ability to preserve and maximize our value. With the hard work and dedication of our employees and the support of our customers and suppliers, we are confident that the business will emerge from this process a stronger company."
In announcing the Chapter 11 filing, Schmidt commented, "Our filing provides US Plastic Lumber with the opportunity to position itself for a viable future. After the filing, US Plastic Lumber will continue to operate without interruption. We will be able to continue to supply our customers with quality composite and HDPE decking and lumber solutions and build stronger relationships with our suppliers going forward."
Triax Capital Advisors have been retained by the company to supervise and direct its reorganization efforts including all capital transaction programs and activities.
