HVAC Breaking News

March 10, 2003: Encompass Files Plan Of Reorganization

March 10, 2003
/ Print / Reprints /
ShareMore
/ Text Size+
HOUSTON — Encompass Services Corporation announced that it has taken a significant step toward completion of its restructuring by filing its Joint Plan of Reorganization and Disclosure Statement with the United States Bankruptcy Court for the Southern District of Texas.

The plan indicates that the Residential Services Group of Encompass, which specializes in installing and servicing HVAC and plumbing systems in newly constructed and existing homes, will be reorganized as a new entity. The new company will be headquartered in Dayton, Ohio, with operations in nine states.

According to Encompass, the plan of reorganization is supported by an investment from Wellspring Capital Management, a New York-based private equity firm. The agreement will result in Wellspring and the Residential Services Group management team owning all outstanding shares of the new entity established to carry forward the business.

"Upon confirmation of the reorganization plan, our new company will be focused exclusively on residential services," said Eric Salzer, who is the designated chief executive officer of the new organization. "We see tremendous potential for developing this business going forward."

"Upon confirmation of the plan, the new company will be positioned for solid growth and profitability with a well-financed balance sheet," said Carl Stanton, partner, Wellspring Capital Management. "This business has an experienced management team, a diversified customer base, and a proven financial track record."

Encompass stated that it has completed the sale of substantially all of the company's assets outside of the Residential Services Group.

"We are pleased to be submitting this plan to the court," said Michael F. Gries, chief restructuring officer of Encompass. "We have made significant progress with our restructuring efforts in a short period. We expect to emerge from Chapter 11 in the second quarter of 2003."

Publication date: 03/10/2003

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

Recent Articles by Greg Mazurkiewicz

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

Multimedia

Videos

Image Galleries

2014 MCAA Annual Convention

Scenes from the 2014 MCAA Annual Convention in Scottsdale, Ariz.

Podcasts

NEWSmakers: Julian Scadden

Training is an ongoing process. Julian will discuss how you can generate maximum return on time and energy invested training by following a three part process. Listen to this podcast to get expert tips on training, tracking and follow up. 

More Podcasts

ACHRNEWS

NEWS 04-21-14 cover

2014 April 21

Check out the weekly edition of The NEWS today!

Table Of Contents Subscribe

SERVICE CALLS POLL

Which statement on service calls best applies to your business?
View Results Poll Archive

HVACR INDUSTRY STORE

plumbing-hvac.gif
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.

DON'T MISS A THING

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

STAY CONNECTED

facebook icontwitter iconyoutube iconLinkedIn i con