O’Hare Foundry Corporation asked the U.S. Bankruptcy Court for the Eastern District of Missouri to extend the exclusivity period for filing its plan and disclosure statement through June 15, and the period to solicit acceptances for the plan through August 24.
Currently, O’Hare Foundry is working with a consultant to improve its pricing and profitability, and continues to work on the financing necessary to its reorganization. The company wants to have those price increases implemented and financing in place before determining the exact terms of its plan.
In addition, the company recently devised a plan for eliminating an unprofitable line of work, which will enable it to liquidate some of its equipment and reduce its space requirements, allowing it to eliminate substantial occupancy expense and increase its profitability.
However, earlier this year, the company ran into some personnel problems and lost some of its most productive employees. It has taken a few months to replace and train them.
Finally, the coronavirus pandemic has introduced substantial uncertainties into the operations of O’Hare Foundry’s customers as well as the company. For the moment, though, there have been no substantially negative effects.
About O’Hare Foundry Corporation
Established in 1921, O’Hare Foundry Corporation manufactures sand castings from brass, brass and bronze alloys, and aluminum alloys.
O’Hare Foundry Corporation sought protection under Chapter 11 of the Bankruptcy Code (Bankr. E.D. Mo. Case No. 19-41834) on March 27, 2019. At the time of the filing, the Debtor estimated assets of between $1 million and $10 million and liabilities of between $1 million and $10 million. The case is assigned to Judge Charles E. Rendlen III.
The Debtor tapped Danna McKitrick, P.C. as legal counsel; Tueth, Keeney, Cooper, Mohan, and Jackstadt, PC as special counsel; and Stark & Company, P.C. as accountant.