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Constellation Enterprises LLC and Its Subsidiaries Implement Debt Restructuring; Facilitated Via Voluntary Chapter 11 Filing

YOUNGSTOWN, Ohio, May 17, 2016 (GLOBE NEWSWIRE) -- Constellation Enterprises LLC (“Constellation”), the parent holding company of four industrial subsidiaries – Commercial Metal Forming (“Commercial”), Jorgensen Forge Corporation (“Jorgensen”), Columbus Castings (“Columbus”), and Zero Manufacturing (“Zero”) (collectively, the “Subsidiaries”) – today announced that it has filed voluntary petitions for Chapter 11 of the U.S. Bankruptcy Code in order to restructure its debt obligations. The Subsidiaries, which are guarantors and borrowers of the debt held by Constellation, are included in the filing and will continue to operate uninterrupted, with the exception of Columbus Castings which will temporarily halt production during this process as it pursues a sale of the business.

The Group has suffered from significant operational issues at Columbus as well as the effects of weakness in the Oil & Gas and Industrial Manufacturing sectors across the Subsidiaries. These issues stressed the Group’s liquidity and challenged a balance sheet already burdened with high leverage.

This proceeding will enable Constellation to implement a financial restructuring that will bring its debt in line with current market conditions. During this period, Commercial, Jorgensen and Zero will continue to operate, uninterrupted, with no change in employment, in the normal ordinary course. Customers can expect to receive products and services as before, and vendors and suppliers will be paid for products and services received post the filing date in the ordinary course.

“The pursuit of this process is a positive step that is in the best interests of Constellation and its Subsidiaries, employees, customers, suppliers and other constituents,” said Donald MacKenzie, Constellation Enterprises’ Chief Restructuring Officer. “The businesses will emerge with a healthier balance sheet and be in a stronger position to meet the needs of their customers.”

William Lowry, Chief Financial Officer of Constellation, added: “We greatly value the ongoing loyalty and support of our employees. Their dedication and hard work are vital to the future of the Constellation. I would also like to acknowledge the importance of the continuing support of our customers, suppliers and business partners during this process.”

Constellation expects to move through this restructuring process very quickly. To provide liquidity for Commercial, Jorgensen, and Zero to operate as normal during this time, a group including the holders (“Noteholders”) of Constellation’s Senior Secured Notes have committed to providing Debtor-in-Possession financing to the Group. In addition, the Noteholders have also provided a bid to purchase substantially all of the assets of Commercial, Jorgensen, and Zero under Section 363 of the U.S. Bankruptcy Code. This acquisition will allow these businesses to emerge from this process with substantially less debt and position them for long-term success. Constellation has also received a letter of intent from an interested party for the acquisition of the assets of Columbus Castings under Section 363 of the U.S. Bankruptcy Code.

The Noteholders’ proposal would be subject to certain conditions, including execution and delivery of a mutually satisfactory definitive asset purchase agreement as well as bankruptcy court approval. Constellation will also solicit competing bids from other potential purchasers and conduct a sales process approved by the bankruptcy court.

Donald S. MacKenzie, of Conway MacKenzie, Inc, is serving as the Company’s Chief Restructuring Officer and Kramer Levin Naftalis & Frankel LLP and Richards, Layton & Finger P.A. are serving as legal advisors.

Additional information, including court filings and other documents related to the restructuring, can be found by visiting http://dm.epiq11.com/COE.

Company Descriptions

Commercial Metal Forming is a leading manufacturer of tank head and tank head accessories, focused on providing highest quality standards and unparalleled Customer Service on on-time delivery, lead-time, quote responsiveness.

Jorgensen Forge Corporation manufactures highly engineered, specialty alloy, open die forgings from high value titanium, aluminum, and steel alloy materials.

Zero Manufacturing manufactures deep-drawn and fabricated aluminum cases, molded plastic cases, enclosures, and assemblies.

For further information, please contact: Jennifer E. Mercer Epiq Strategic Communications for Constellation Enterprises LLC 310-712-6215 jmercer@epiqsystems.com

Source:Constellation Enterprises, LLC