Beall Corporation Inc announced that it commenced reorganization proceedings on September 24 in Portland, Oregon, intending to use the reorganization to seek new partnerships and working capital investments that will return the company to historic levels of profitability.
The company has a near-record backlog of orders, but working capital constraints impaired its ability to complete orders in a timely manner, according to James Beall, Beall Corp chief executive officer. Beall intends to use the reorganization proceedings primarily to recapitalize the company to respond to high levels of demand for its truck-mount cargo tanks and tank trailers.
“This reorganization process is an opportunity for Beall to strengthen our financial health and secure our long term growth without significant disruptions to our customers, vendors and employees,” Beall says. “I am grateful for their unwavering loyalty and support and look forward to many more years of providing the highest quality service and best looking, most reliable trailers on the road.”
Beall’s major creditor reportedly is supportive of the company’s restructuring and is working closely with the company to maximize value for all stakeholders. The creditor agrees to consensual use of cash collateral and is negotiating Debtor-in-Possession financing that will provide adequate liquidity for normal operations without any disruptions to its customers’ orders and branch service centers.