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