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December 19, 2006

West Warwick company Amtrol files for bankruptcy

Amtrol, the West Warwick-based manufacturer of water storage and pressure control products, announced today that it filed for voluntary Chapter 11 bankruptcy reorganization in an effort to transfer more than $97 million of debt into company stock.

The move comes as the company struggles to pay off nearly $180 million in debt.

In May, Amtrol filed a quarterly report that stated Amtrol had “significant working capital deficiency that raises substantial doubt about its ability to continue as a going concern.”

The bankruptcy filing, company officials said, will improve Amtrol’s long-term financial stability by significantly reducing the company’s bond payments, while replacing the company’s owners, the New York City based Cypress Group, which has owned the company since 1996.

Amtrol said it expects to continue to operate in the normal course of business during the reorganization process.

Amtrol said it currently has 400 employees in Rhode Island. It is unclear how the bankruptcy filing will affect the employees.

-- Journal staff writer Arthur Kimball-Stanley

Posted by Steve Peoples  at 4:20 PM | Permalink

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