Neenah Foundry engages Rothschild Inc as financial adviser
Friday, 10 Jul 2009
Neenah Enterprises Inc & Neenah Foundry Co said that it has engaged Rothschild Inc as a financial adviser to review options for enhancing its liquidity position.
Mr Bob Ostendorf president & CEO of Neenah said that efforts to streamline operations and reduce expenses have helped provide the company with sufficient liquidity to continue operations. He added that those efforts include the previously announced shutdowns of the company’s plants in Kendallville and El Monte.
Neenah also said that it has reached an agreement with Tontine Capital Partners LP, the sole holder of the company's 12.5% senior subordinated notes, to defer a semi annual interest payment to Tontine that was due July 1st 2009.
Neenah Enterprise and Neenah Foundry saw net sales for the three months ended March 31st 2009 fall by 30% to USD 79.9 million, largely because of lower volumes. It reported a net loss for the second quarter of USD 109.5 million. The net loss includes the effects of a goodwill impairment of USD 88.1 million and restructuring costs and asset writedowns of USD 12.4 million related to the plant closures.
