ROANOKE, Va. (July 16)—RBX Corp. and its subsidiaries had its reorganization plan confirmed by the United States Bankruptcy Court, Western District of Virginia, a step that will help the company emerge from Chapter 11 bankruptcy, a company release stated July 13. RBX Corp., a manufacturer of closed-cell rubber foam, rubber compounds, plastic foam and other polymer products used in industrial and consumer applications, filed bankruptcy relief Dec. 6, 2000 to solve debt and liquidity-related problems, a company spokesman said. The confirmation of the restructuring plan by the court is the final step in the Chapter 11 process, said Timothy Bernlohr, executive vice president. "The reorganization has been a very positive step for RBX, as it has allowed the company to address and resolve the majority of issues related to its long-term debt and liquidity. The company now has a greater ability to increase investment in our business and is better positioned for future growth," Bernlohr said. The financial restructuring has helped RBX reduce its long-term debt from about $225 million to about $25 million, the spokesman said. To help aid in further consolidation, the firm received court approval to close its Midwest Rubber Custom mixing plant in Barberton, Ohio. RBX wants to transfer the plant's operations to its Tallapoosa, Ga. operation. The request to shut down Midwest Rubber was due to excess capacity in the custom mixing industry along with slowing demand from the automotive industry, the company said.
U.S. Supreme Court approves RBX reorganization plan
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