On August 13, 2020, Arandell Holdings, Inc.(“Arandell” or the “Company”) today announced that the Company, along with all its subsidiaries, has voluntarily filed for business reorganization under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware.
The Company’s decision is being driven in large part by industry changes resulting from the COVID-19 pandemic and follows a comprehensive evaluation of opportunities to reduce its debt and better position Arandell to compete and deliver exceptional products and services to its clients. Arandell has sufficient liquidity to continue operating its business and remains committed to serving its clients with the same high standards of quality and reliability they expect from Arandell.
Arandell is engaged in constructive discussions with its lenders regarding strategic alternatives and the terms of a potential financial restructuring plan. Arandell has received commitments for $31.5 million in debtor-in-possession (“DIP”) financing from certain of its revolving and equipment lenders along with an accounts receivable factor subject to the satisfaction of certain closing conditions. Following court approval, this financing, combined with cash on hand and generated through its ongoing operations, is expected to be sufficient to support the Company’s operational and restructuring needs.
Arandell, like all businesses, continues to make adjustments related to COVID-19, taking necessary steps to fortify operations and effectively execute the company’s critical role during this time while ensuring the health and safety of employees and visitors remains a top priority.
Chief Executive Officer
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