ROUND ROCK, TEXAS — American Plumbing and Mechanical Inc. has announced in late July that the United States Bankruptcy Court for the Western District of Texas confirmed its plan of reorganization, paving the way for AMPAM's emergence from Chapter 11. The announcement represents another major milestone in the restructuring process AMPAM and its affiliates commenced on Oct. 13, 2003. Since that time, AMPAM has restructured its operations to focus on its core operations.
"Emerging from Chapter 11 has been an important goal for the company and is the capstone event in the successful restructuring of our business activities," said Robert Christianson, AMPAM's chairman of the board and chief executive officer. We will emerge with a strong, revitalized balance sheet; the financing required to move forward and the ability to focus our attention on the needs of our customers. It has been a challenging process for our employees, customers, vendors and stakeholders.
"We are excited to announce our success and are very grateful to our customers and employees."
The reorganized AMPAM will consist of five independent operating subsidiaries.
Those five operating units comprise the operations of RCR Cos. with locations in Southern California, Sacramento, Calif., and Las Vegas; LDI Mechanical Inc. with locations in California, Nevada, Colorado and Maryland; Christianson Air Conditioning and Plumbing with locations in Austin, Dallas and San Antonio, Texas; Parks Mechanical Inc. based in Southern California; and Power Plumbing L. P. based in Houston.
Under the terms of the approved plan, the senior secured lenders would receive the controlling interest in the capital stock and will transfer the capital stock to executive management of the subsidiaries.
In a separate announcement, AMPAM said that the Bankruptcy Court has approved the sale of the assets and business operations of its wholly owned subsidiary AMPAM J.A. Croson Co. to J.A. Croson LLC, which was formed under the existing local management group.
AMPAM J. A. Croson operates primarily in the Orlando and Sorrento, Fla., areas. The sale was expected to close some time in the middle of August.
"This represents an important step in implementing our confirmed plan in a manner that delivers the highest value to our economic stakeholders while maintaining our high standards for customer service," explained Christianson. " We anticipate a seamless transition of the AMPAM J.A. Croson customers and other business relationships to J.A. Croson LLC."