by: Matt Sharp, KTLO
One of Harrison’s largest employers is filing Chapter 11 bankruptcy. According to Arkansas Business, Pace Industries, LLC, made the announcement early Monday saying the move will “give the company the financial foundation necessary to resume normal-course operations following the COVID-19 outbreak.”
The company idled operations in Harrison and Fayetteville in March due to the coronavirus, putting nearly 600 workers on the sidelines. According to Bloomberg Law, the company also announced last week it was temporarily shutting down another plant in Michigan and laying off nearly 450 employees.
The business is estimating liabilities of between $100 million and $150 million. Its senior secured noteholders and existing revolving credit lenders will reportedly provide commitments for up to $175 million in debtor-in-possession financing to help the company meet its commitments during the bankruptcy process.
Under the terms of its proposed plan, Pace Industries would convert its existing senior secured notes into 100% of the equity in the reorganized company. The statement from the business says it expects to complete the process in the second quarter.
The company stated it filed motions with the bankruptcy court allowing it to maintain employee wage and benefit programs, honor customer warranties and continuing to pay suppliers.
Pace Industries handles aluminum, zinc and magnesium die casting. It offers end-to-end, nonferrous die cast supply chain solutions and different services, including advanced engineering, tool and die fabrication, prototyping, precision machining, assembly, finishing and painting. Its clients include those in the automotive, medical, electrical and lawn and garden industries.
Pace Industries was founded in Harrison in 1970 and currently has operations in eight states. It also has operations in Mexico unaffected by the bankruptcy filing.