02.02.2005

Maxim Crane exit Chapter 11

After a period of over seven months, Maxim Crane Works/Anthony crane, the world’s largest crane rental company, has officially emerged from Chapter 11 protection under the US bankruptcy code.

Maxim’s consolidated has been reduced from $700 million when it filed for bankruptcy in June of last year to around $280 million. The company has also entered into a $50 million revolving credit facility provided by Goldman Sachs.

“Since commencing our voluntary Chapter 11 case, we have successfully restructured and improved our financial structure,” said President and Chief Executive Officer Art Innamorato.

“This process has Maxim Crane put behind it many of the challenges of the past, permitting the Company to emerge from Chapter 11 with a significantly de-leveraged balance sheet, cash to fund operations and an improved expense structure. These actions, together with the hard work of our employees, form a strong foundation for growth.”

The restructured business will have a total of 2,400 pieces of equipment, largely Cranes. aerial lifts and telehandlers. The crane fleet will be 1650 units strong operating from 38 depots.

Vertikal Comment

While relatively short this reorganisation was marked by a number of unusual occurrences, the most remarkable coming at the end of September when the then Maxim President, Al Bove, who took the company into Chapter 11, jumped ship and teamed up Joe Wesley of Amquip to launch a counter bid for the Maxim business.

Bove, who was a 30 year veteran of Anthony Crane (now Maxim), said "if the sale to AmQuip occurs, Maxim Crane will once again be run by crane people, rather than accountants, lawyers and MBA's. I know from the very depths of my heart that this is the only way the Company can be saved."

These comments referred to the period from1998 when Anthony was acquired by Bain capital and then highly leveraged prior to its failure in June 2004.

For a while it looked as though the business would be split up and sold off to the highest bidder. However since November the restructuring has gone smoothly. In Al Boves tirade against the restructuring programme he predicted that the business would be back in Chapter 11 within 18 months. Time will tell.

For further information:

(See Vertikal Archive Oct 4 2004)
Amquip bids for maxim
(Vertikal.Net Jan 11th)
Maxim cleared to emerge
(Vertikal Archive June 23 2004)
Worlds largest crane co