SLI Inc., Canton, Mass., and its U.S. subsidiaries have filed voluntary petitions for reorganization under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware.
The company said that the filing would allow it to continue business operations while implementing its restructuring plan.
SLI's Chapter 11 petition does not include its Asian, European or Latin American businesses.
SLI said it also secured a commitment for $35 million in debtor-in-possession financing from a group of lenders led by Fleet National Bank. The post-petition financing, which is subject to Bankruptcy Court approval, is expected to provide the company with funding to support its post-petition trade and employee obligations, as well as the company's ongoing operating needs during the restructuring process, the company said.
The lenders agreed to forbear from exercising any rights or remedies against SLI's non-debtor subsidiaries arising from the Chapter 11 filing.
Frank Ward, the company's chairman and CEO, said, “We believe the Chapter 11 process will enable us to address our liquidity issues while providing our customers with continued high quality products and services. The company does not expect the Chapter 11 process to disrupt our operations and we will continue to meet our post-petition obligations to suppliers, venders and customers.”
The company has already completed workforce reductions and doesn't anticipate any additional reductions as a result of the Chapter 11 process.
On Aug. 1, the New York Stock Exchange halted trading in SLI's stock at 35 cents. The exchange said it would delist the issue pending a possible appeal.