Fansteel, Inc. and Subsidiaries Wellman Dynamics Corporation and Wellman Dynamics Machinery & Assembly Inc. File for Chapter 11 of the United States Bankruptcy Code

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Sep 15, 2016, 12:24 ET

CRESTON, Iowa, Sept. 15, 2016 /PRNewswire/ -- Fansteel, Inc. and subsidiaries Wellman Dynamics Corporation and Wellman Dynamics Machinery & Assembly Inc. (www.fansteel.com), a leading manufacturer of precision engineered cast components for the global aerospace, defense, and industrial markets, today announced that it has filed a voluntary petition for reorganization under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court, Southern District of Iowa.

For several months Fansteel implemented a comprehensive performance improvement plan designed to attract new senior secured financing. The filing will permit Fansteel to continue to make the necessary operational and financial performance improvements that will create additional liquidity and profitability, and attract new capital to grow the company.
"We look forward to the reorganization process as a means to significantly strengthen both our income statement and balance sheet," stated James Mahoney, Chief Executive Officer of Fansteel. "We have moved forward with this reorganization, confident that the bold steps taken will bring satisfaction and value to our customers, employees, suppliers, and the communities in which we operate."
"We genuinely appreciate the loyal support Fansteel has received from our customers and suppliers, and employees. We expect the reorganization process to restore Fansteel to a solid financial footing for years to come, which will justify and reward their support," said Mr. Mahoney.

Founded in 1907 and employing over 600 worldwide, Fansteel is headquartered in Creston, Iowa. It has long occupied a unique position in the aviation and defense industry. The Company is one of only a handful of manufacturers in the world with the expertise and capacity to produce large scale, highly complex magnesium and aluminum alloy castings that meet the stringent design and performance demands of the largest aerospace and defense companies.

The company is now focused on executing a comprehensive restructuring plan, without interruption to business operations, that will lead to an improved working capital structure and new borrowing relationships.

Fansteel has retained respected legal counsel, Jeffrey D. Goetz, of the Des Moines, Iowa firm of Bradshaw Fowler Proctor and Fairgrave P.C.
Fansteel has also retained Ronald J. Reuter, Certified Turnaround Professional (CTP), as the company's Chief Restructuring Officer to assist with the reorganization process in an efficient manner.
Further, as part of its restructuring efforts, the company will continue to enhance the productivity of all assets and maximize the long term value of the business for the benefit of all stakeholders.
Operating under the protection of Chapter 11 Reorganization will provide the company's vendors with assurances that they will be paid for products and services on a going‐forward basis so as to ensure stable manufacturing to serve its customers in the normal course.
The restructuring plan will position Fansteel with a stronger business foundation, ultimately leading to expanded order volume for its vendors and a wider array of manufacturing capabilities for its customer base, which has continued to increase.