From: http://www.bizjournals.com/cincinnati/s ... ily54.html
andWornick files Chapter 11 bankruptcy, reorganization plan
Business Courier of Cincinnati
Friday, February 15, 2008
The Wornick Co. on Friday announced a plan to reorganize via a Chapter 11 bankruptcy filing. It filed the bankruptcy petition Thursday in the U.S. Bankruptcy Court for the Southern District of Ohio in Cincinnati.
The Blue Ash-based company, which makes prepared meals for the military and commercial markets, said high debt levels forced the reorganization.
"Wornick has been operating with a highly leveraged balance sheet since July of 2004," said CEO Jon Geisler, adding that the closing in 2006 of its McAllen, Texas, facility and consolidation in Blue Ash added to its expenses.
"The factors put a strain on our liquidity and we simply cannot continue to operate effectively with our high debt level," Geisler said in a news release posted on the company's Web site.
Day-to-day operations will continue as usual and all suppliers will be paid in full, Geisler added.
Under the terms of the reorganization, DDJ Capital Management LLC, a Waltham, Mass.-based investment firm, will provide up to $35 million in debtor-in-possession financing, as well as exit financing. In addition, a bondholders group will form a new entity to purchase the equity of the reorganized company, according to the release.
The reorganization plan is subject to approval by creditors and the Bankruptcy Court. The company said it plans to emerge from Chapter 11 by July.
Warnick is a major supplier of Meals-Ready-Eat (MREs) to U.S. and international military services. The company is currently owned by New York-based Veritas Capital Fund II LP, which bought it in 2003 for about $155 million.
From: http://news.enquirer.com/apps/pbcs.dll/ ... 50407/1076
Wornick Co. files for Chapter 11
By MIKE BOYER
Blue Ash-based Wornick Co., the leading maker of military and "shelf-stable" meals for Kraft Foods Inc. and others, filed for Chapter 11 bankruptcy reorganization Thursday.
The privately held company said it expects to restructure its more than $100 million in debt and emerge from court protection by July.
"This process will allow us to restructure our debt to address the financial obstacles that inhibit our ability to grow while we continue to operate our business," said Jon Geisler, Wornick CEO.
Wornick, which employs 683 at two plants in Blue Ash, said it has worked out a restructuring plan with a majority of its senior note holders.
The plan, which envisions a sale of the restructured company, must be approved by creditors and U.S. Bankruptcy Court.
Wornick said it has $35 million in post-petition and exit financing from Waltham, Mass.-based DDJ Capital Management LLC. Wornick said it expects trade creditors and suppliers to be paid in full.
New York City-based Veritas Capital Fund II LP acquired Wornick in 2004 for $155 million, but in a court filing Geisler said the company's high-level of debt "has been an obstacle to achieving profitability.''
Last year, the company had sales of $191 million, about 44 percent of which were "Meals, Ready to Eat" (MREs) for the Department of Defense.
During 2006, Geisler said the company experienced losses from the shutdown of its McAllen, Texas, plant and relocation of its corporate office to Blue Ash, as well as from the launch and cancellation of a new product line called Eversafe.
Wornick also makes food for Gerber Products Co., Quaker Oats Co. and NutriSystem Inc.
