Pace Industries, an aluminum, zinc and magnesium die casting company based in Fayetteville, said Wednesday (June 3) the business has emerged from Chapter 11 bankruptcy protection after successfully completing a financial restructuring plan.
Citing the impact of the COVI-19 (coronavirus) pandemic, the company filed a voluntary petition for relief on April 13, under Chapter 11 of the U.S. Bankruptcy Code. The company proposed a prepackaged plan that would restructure approximately $324 million in debt, primarily through a debt-for-equity swap.
The company’s reorganization plan was confirmed by the U.S. Bankruptcy Court for the District of Delaware on May 29, according to a company news release. The reorganization frees up cash and positions Pace for future growth, the company said.
The company, a major supplier to the auto industry, also announced a new CEO, Donald (Donnie) Hampton, Jr. The leadership move is effective immediately. Hampton has more than two decades of industry experience and global P&L leadership. He most recently worked in Michigan for the North American division of Faurecia, a French auto supplier.
“We begin this next chapter for Pace Industries as a financially stronger company, which will enable us to capture the full benefit of the cost-saving initiatives implemented prior to the COVID-19 outbreak as well as new market strategies,” Hampton said. “I am excited to lead Pace Industries forward as we execute on our strategic growth opportunities and continue to harness our market-leading capabilities to deliver for our customers as a fully-integrated provider.”
Scott Bull, the CEO the past 12 years and a company employee for more than 40 years, will remain with Pace Industries in an advisory role. A timeframe for that transition role was not disclosed.
“Pace Industries has a bright future ahead of it, and I am confident handing the reins to Donnie, who I know will do an outstanding job leading the company,” Bull said. “He is committed to maintaining the same energy with which Pace Industries serves its customers and provides high-quality products to meet their unique needs. Donnie’s experience and leadership will help the company execute on its strategy and position Pace Industries for success.”
Pace Industries was founded in 1970 in Harrison. The company has roughly 4,000 employees with operations throughout the U.S. and Mexico.