22.09.2010

Coast Crane files Chapter 11

West coast USA based Coast Crane Company, the crane and access sales and rental company has voluntarily initiated proceedings under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court in Seattle.

The Company also announced that it has entered into an Asset Purchase Agreement with a "stalking horse" bidder* Clearlake Capital Group, a private equity firm, for it to acquire most of the Company's assets, subject to bankruptcy court approval.

Coast has already secured Debtor-in-Possession financing from its existing lenders, to provide sufficient working capital to fund operations and allow the company to meet its employee, customer and supplier commitments throughout the sale process.

The company is also seeking court approval to allow it honour existing customer deposits, employee payroll and sales taxes and to approve an auction and sale process under the Chapter 11 procedures.

Coast Crane says it is looking to complete a sale of its assets in an orderly and efficient manner and expects to complete the sale process within 90 days or less. It expects no service interruptions whatsoever and is conducting business as usual.

Dan Goodale, Coast Crane's chief executive said: "We are taking this step to better position our company for the future. The recent economic downturn and the impact on the construction industry in particular, had impacted our balance sheet and our banking facilities. Our market position however, has remained strong and we continue to provide our customers with the industry's best products and services. I strongly believe we have the most qualified team in the industry and am proud of all of our employees accomplishments.”

“We now have the financial resources to honour all of our future commitments and have every intention of doing so. We fully expect to emerge a stronger company and believe in our future."

Coast Crane was founded in 1970 and is a long time Grove, Manitowoc and JLG distributor. It sells and rents cranes, telehandlers and aerial lifts from 14 locations, on the West Coast and Alaska, Hawaii and Guam.

Clearlake Capital is a private investment firm co-founded by Steve Chang, Behdad Eghbali, and José Feliciano in partnership with Reservoir Capital Group. It looks to work with strong management teams of businesses that are going through change and transition with long-term capital and operational expertise. Its portfolio includes companies in business services, communications and media, energy and power, healthcare, manufacturing, retail/consumer, and technology.

*A stalking Horse bidder is usually one selected by the seller and is the first to bid for the assets in a bankruptcy situation – usually to head off low bids