The Business Journal of Milwaukee reported that the indirect parent of Neenah Foundry Co, the Neenah company that manufactures manhole covers and other iron castings and steel forgings for municipal and industrial markets, has initiated a recapitalization plan under a pre-negotiated voluntary Chapter 11 filing.

Neenah Enterprises said that the reorganization is expected to reduce the debt for Neenah Enterprises Inc by about USD 220 million while providing 100% recoveries for the company's suppliers and vendors,

Neenah said it will continue to conduct business as usual through the restructuring process. Pending Bankruptcy Court approval, the company has commitments for up to USD 140 million in debtor-in-possession financing to fund continuing operations.

Neenah Enterprises finished 2009 with an annual loss of USD 149.9 million, the firm reported in its 10-K filing with the U.S. Securities and Exchange Commission. That compares with a 2008 loss of USD 12 million.

(Sourced from The Business Journal of Milwaukee)