Thomas Equipment, Inc. Subsidiary Files Court-Supervised Restructuring
Thomas Equipment, Inc., Centreville, New Brunswick, has announced that Pneutech, Inc., its wholly owned subsidiary that engineers, manufactures, and distribute pneumatic and hydraulic systems and components, has initiated a court supervised restructuring in Canada to facilitate the refinancing of its credit facilities. Thomas Equipment, Inc. and its subsidiaries in other countries are not subject to the Canadian court-supervised restructuring.
Pneutech has obtained an order under the Companies' Creditors Arrangement Act in a hearing before the Quebec Superior Court of Justice, which covers Pneutech and its wholly-owned subsidiaries Rousseau Controls and Hydramen Fluid Power.
Pursuant to the order, Pneutech plans to complete a refinancing of the existing lender's facilities and to enter into a new and larger facility in the form of "debtor-in-possession" financing. These credit facilities are expected to provide Pneutech with increased financing to fund ongoing operations while the company implements its restructuring.
Pneutech will continue to operate during the reorganization process. It is anticipated that all creditors will be paid in full. An 8-K will be filed with the Securities and Exchange Commission relating to these matters.