Aug. 26, 2002 – Sarasota, FL – Uniroyal Technology Corp. and its subsidiaries have filed voluntary petitions for reorganization under Chapter 11 of the US Bankruptcy Code in order to facilitate a restructuring of debt and relieve cash-flow issues.
To ensure that customer and vendor relationships remain intact during the process, Uniroyal has received a commitment for up to $15 million in debtor-in-possession (DIP) financing from The CIT Group Inc., subject to court approval.
“Today’s action provides us with time to restructure our balance sheet while continuing to operate our businesses without interruption,” said Uniroyal Chairman and CEO Howard Curd. “We hope to emerge from this process quickly as a stronger, more competitive organization.”
He added that customers, vendors, and employees should notice no difference in the company’s operations during the process.
“The reorganization proceeding should have virtually no impact on daily operations,” Curd said. “Our facilities will remain open, and transactions will proceed in the ordinary course of business. Our customers should experience no interruption in the supply of our products. Vendors can be assured that they will be paid for all post-petition goods and services. Employees can expect to continue being paid and receiving benefits.”
The company is seeking court permission to pay pre-petition claims in the ordinary course of business to vendors who agree to continue providing goods and services on normal and customary trade terms to the company’s strongest operating subsidiary, Uniroyal Engineered Products LLC (UEP). The company expects to file soon a plan of reorganization with the court that provides full recovery for all creditors of UEP. Pre-petition claims of the company’s other three operating subsidiaries — Sterling Semiconductor, Uniroyal Optoelectronics, and NorLux Corp. — will be resolved through the Chapter 11 process.
Because the Bankruptcy Code gives priority status to post-petition claims, the company intends to pay in the ordinary course of business for goods and services received after the Chapter 11 filing for all business segments.
“The company is seeking to make the transition as smooth as possible and will work with creditors to resolve any issues,” Curd said.