posted
This just came out. Look at the chart. Over .50 when they filed Chapter 11 in November.
August 04, 2005 09:27 AM US Pacific Timezone
Amcast Industrial Corporation Successfully Reorganizes; Emerges from Chapter 11; Converts Pre-petition Debt to Combination of Senior and Subordinated Debt and Equity; Closes on $20 million of New Financing; Focuses on Automotive Operations
DAYTON, Ohio--(BUSINESS WIRE)--Aug. 4, 2005--Amcast Industrial Corporation announced today that it has successfully emerged from Chapter 11 of the U.S. Bankruptcy Code. Amcast filed for Chapter 11 on November 30, 2004 in the bankruptcy court in Dayton, Ohio and subsequently filed a Plan of Reorganization and Disclosure Statement. The company's secured and unsecured creditors overwhelmingly voted in favor of the plan, and it was confirmed by the court on July 29, 2005.
Under the terms of the plan, Amcast's pre-petition senior lenders put in place a long-term capital structure by exchanging their former holdings of Amcast senior secured debt for $13 million in senior secured debt and $51 million in secured subordinated debt, with the remainder in equity. As a consequence, these institutions now own all of the company's common stock and equity. In addition, a group of the pre-petition lenders have committed to lend the reorganized Amcast up to $20 million pursuant to a new revolving credit agreement with customary terms and conditions. The lender's legal and bankruptcy counsel in this restructuring transaction is Haynes and Boone, LLP. Barrier Advisors, LP serves as financial and turnaround advisor to the lenders. "We are pleased to have this type of strategic commitment to our company from the lenders," said Byron Pond, Amcast's former chairman and CEO. "They have worked with us throughout the reorganization and understand our business thoroughly; the entire management team appreciates the support received from them and our other constituents, including our suppliers, customers and employees." Amcast is very pleased that Mr. Pond's leadership and contribution will continue in his ongoing role as a member of the company's newly formed board of directors.
During the case, Amcast divested its remaining non-automotive businesses and intends to focus on the continued successful penetration of its global customer base from three plants in Indiana: Fremont, Gas City and Franklin. The reorganization also provided the opportunity to downsize corporate overhead while positioning the company to more efficiently and strategically focus on its customers and the marketplace. Amcast will maintain its substantial marketing and engineering presence in the Detroit area.
"We believe this is good news for us and for our customers," Pond continued. "We have addressed the balance sheet issues that led to the decision to reorganize and can now make the necessary investments to ensure our future success. We have some exciting new technologies under development and look forward to sharing them with the market. We are also increasing our marketing presence among both North American and transplant manufacturers. We envision substantial growth in the wheel and aluminum component sectors, facilitated by a more appropriate capital structure and ample liquidity."
Pond noted that during the restructuring process Amcast fulfilled all of its supply obligations to its customers and continued to be awarded new business. Amcast's largest customer, General Motors, also renewed its agreements with the company. "We will continue our commitment to provide the highest quality product and service that our customers have come to expect, and intensify our efforts to run a lean and responsive business," Pond said.
Amcast Industrial Corporation is a leading manufacturer of technology-intensive metal products. Its only business segment is Engineered Components for automotive OE manufacturers.
posted
Nice find bigthc1! I agree that there is potential here because this company hasn't had a positive PR for quite some time. The stock has dropped 96% (from around $.50 to 2 pennies) since the bankruptcy filing back in late November of 2004 and now that they're out, it should climb back up. Definitely one to put on your watch list IMO. With news like this, it could easily gap up tomorrow. GL all!
posted
Yeah, this news definately isn't going to make the price drop. LOL. It's at the bottom and this in the only news they could have dropped that makes it worth a look. After looking, I see green comin'!
posted
With something like this, there most certainly should be follow-up news and stock watch alerts to get people's attention. I honestly don't think that many people noticed the PR, or else it'd be up big time by now. GL all.
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posted
8-K Report just came out. Here's an important snippet of information:
As of June 30, 2005, 9,709,000 shares of common stock and no shares of preferred stock of Amcast were issued and outstanding. Pursuant to the terms of the Plan of Reorganization, the Prepetition Secured Lenders (as that term is defined in the Plan of Reorganization) were issued an aggregate of 1000 shares of common stock of Amcast, which represents all of the issued and outstanding shares of equity stock of Amcast as of the date hereof.
This puts the company's stock value (based on a pps of .02) at roughly $194,180, which I'm sure is way, way, way, undervalued! This could be an investor's dream come true.
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posted
I can't believe this isn't getting more attention. This stock was forced down to this level because they went bankrupt. Now that they are out of bankruptcy I don't see how investors aren't interested. It might take another PR to get it going.
posted
If this stock is even worth 10% of what it was when they went Chapter 11 then the share price should be over .05. I believe it is worth more than that sice they were a failing company before and now they are restructured.
posted
Looking at the 2-year chart, this thing has so much potential that it's crazy. The PR said that the company kept working on their contracts during the bankruptcy and they even were able to start on new contracts during that period.
Maybe people are weary to invest in this because pinksheets.com still shows a warning message saying that AICOQ is in bankruptcy. Hopefully, this message will dissappear soon since they have emerged from Chapter 11. Also, maybe it will take another PR showing current business endeavors and monetary figures to spark people's interest. It will click soon, though IMO.
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posted
Good points Albireo. I think the problem people have in investing a Pinksheet that was in bankruptcy at some point. What's to say they won't do it again? Pinks are iffy enough, but when you add in the "B" word, it gets really scary.
That being said. I think it could be a great short term play.
-------------------- If you don't sweat the pennies, you're not making any money.
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posted
I don't think they would have been able to get all that new financing if they were gonna go bankrupt anytime soon. Yesterdays PR mentioned they have renewed contracts with General Motors.
posted
Not sure what you mean, dj. Ameritrade doesn't show any SEC filing talking about new shares of common stock. Pinksheets.com isn't showing any news either tonight for some reason. I don't see any PRs saying anything like this either. Could you elaborate?
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In full satisfaction of all Prepetition Secured Lender Claims under the Prepetition Secured Credit Agreement, the Line of Credit Documents, the Northwestern Note Agreement and the Principal Note Agreement (collectively, the "Prepetition Transaction Documents"), the Prepetition Secured Lenders shall receive the following after accounting for the sale of Lee Brass for a value of $5 million (as more fully described in the Disclosure Statement):
(i) their pro rata share of the $13 million Term Note A, minus the funded amount of the DIP Facility on the Effective Date, with the payment and lien priorities, terms and conditions set forth in the Term Note A Agreement;
(ii) their pro rata share of the $51 million Term Note B with the payment and lien priorities, terms and conditions set forth in the Term Note B Agreement; and
(iii) their pro rata share of 100% of the New Amcast Common Stock issued as of the Effective Date (as Amcast Interests will be canceled pursuant to Section 4.4 of the Plan).
-----------------------------------------------
Note Section 4.4
4.4 Impaired Classes of Interests.
(a) Class 8: Amcast Interests. All Amcast Interests of any kind, including without limitation, the Old Amcast Common Stock, or any warrants or other agreements to acquire the same (whether or not arising under or in connection with any employment agreement), shall be cancelled as of the Effective Date and the holders thereof shall not receive or retain any property under the Plan on account of such Interests.
Does that make it a bit more clear Albireo??
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posted
Chances are they will add shares but that will take time. I called CEO friday and he said alot of things have to be done as far as getting the company ready. Since the stock dropped from .50c to now .03c the the shares o/s is worthless. I will say that if you see volume on this stock good chance you will see .50c because the MM have not given alot of cash out since thew chapter 11..
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