The company stated that during the Chapter 11 process, it expects operations to continue as normal and customer work to proceed as scheduled. As part of its first-day motions, Encompass expects to receive court orders authorizing ongoing payment of its employee wages and benefits, payment of its vendors for goods and services provided under normal credit terms, as well as other customary first-day orders.
“We believe today’s filing alleviates much of the uncertainty that has surrounded our business in the last few weeks and months,” said Joe Ivey, president and CEO of Encompass. “We look forward to moving rapidly through the Chapter 11 process.”
The company also stated that it expects to file a plan of reorganization with the Bankruptcy Court before the end of the year. This plan will anticipate the company continuing its current program of divestitures of noncore or underperforming assets.
Publication date: 11/25/2002