June 14, 2006
Werner Company, the world's leading manufacturer and distributor of ladders, climbing equipment and ladder accessories, files voluntary petitions for reorganization under Chapter 11.
On June 12, Willkie client Werner Company, the world's leading manufacturer and distributor of ladders, climbing equipment and ladder accessories, announced that it and several affiliated companies have filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code.
A team of Willkie bankruptcy and corporate attorneys are assisting Werner and its affiliates with the Chapter 11 filings in the U.S. Bankruptcy Court for the District of Delaware, and in securing $99 million in debtor-in-possession (DIP) financing from Black Diamond Commercial Finance LLC, the CIT Group/Business Credit Inc. and Morgan Stanley Senior Funding. Subject to court approval, these funds will be used to cover day-to-day business operations, including payments to suppliers and employee wages and benefits.
Greenville, Pa-based Werner will continue to operate in the normal course of business during the Chapter 11 reorganization process. All of the company's manufacturing and distribution facilities remain open and continue to serve customers as usual. Werner attributes much of its financial predicament to its highly leveraged capital structure and the continuing unprecedented high prices for aluminum and other raw materials. With the current reorganization, Werner expects to emerge as the leading low-cost producer of ladders and other climbing products and to leverage the Werner brand to drive future growth.
The matter is being handled by partners Matthew Feldman and Cornelius Finnegan, and associates Casey Boyle, Jessica Etra, Nichole Fisher, Jeffrey Goldfarb, and Daniel McElhinney.