AMPAM Files For Reorganization

October 25, 2003
/ Print / Reprints /
/ Text Size+
ROUND ROCK, Texas - American Plumbing & Mechanical Inc. (AMPAM) announced that it has filed petitions under Chapter 11 of the U.S. Bankruptcy Code and intends to implement a restructuring plan. The company also announced that it has negotiated a financial restructuring plan with its senior lenders and other major constituents that will significantly reduce the debt on its balance sheet and strengthen the company's overall financial position.

The filing takes place several months after a management shake-up, which saw the resignation of then-president, COO, and CFO David Baggett. After Baggett's resignation in April, four AMPAM directors quit their positions in May. The four departed board members are Michael Workman, Albert Niemi, Richard Pollard, and Susan Rheney.

The proposed financial restructuring plan will restructure the terms of the company's senior debt obligations and convert all of the company's subordinated debt into preferred stock. These changes to the capital structure will significantly reduce annual cash interest payments, stated AMPAM.

The U.S. Bankruptcy Court granted first day motions for relief that is intended to provide AMPAM the necessary administrative, procedural, and substantive tools to support its customers, employees, vendors, and other business partners.

"We are pleased with the court's prompt approval of all of our first day motions," said Robert Christianson, AMPAM chairman of the board and CEO. "The relief granted will enable AMPAM to continue on a business-as-usual basis with our customers and suppliers during the restructuring process."

AMPAM's revenue in fiscal 2002 was $575 million with a nearly $55 million loss. The company employs more than 5,500 people in 35 operations in 18 states.

Publication date: 10/27/2003

Did you enjoy this article? Click here to subscribe to The NEWS Magazine

You must login or register in order to post a comment.



Image Galleries

2014 Energy Efficiency Forum

Highlights from the 25th annual Energy Efficiency Forum in Washington, D.C.


NEWSMakers: Joseph Groh

Joseph Groh, an industry veteran boasting 35 years of HVAC experience, discusses the 2008 bicycle accident that cut his career tragically short, and how the Joseph S. Groh Foundation is his way of giving back to the construction trade. Posted on Aug. 22.

More Podcasts


NEWS 08-25-14 cover

2014 August 25

Check out the weekly edition of The NEWS today!

Table Of Contents Subscribe

Prohibiting HFCs

EPA is proposing a rule that would prohibit some HFCs in select refrigeration applications. Do you agree with this move?
View Results Poll Archive


2014 National Plumbing & HVAC Estimator

Every plumbing and HVAC estimator can use the cost estimates in this practical manual!

More Products

Clear Seas Research


Clear Seas ResearchWith access to over one million professionals and more than 60 industry-specific publications, Clear Seas Research offers relevant insights from those who know your industry best. Let us customize a market research solution that exceeds your marketing goals.


Magazine image
Register today for complete access to Get full access to the latest features, Extra Edition, and more.


facebook icontwitter iconyoutube iconLinkedIn i con