RBX exits Chapter 11 under new financing deal

ROANOKE, Va. (Aug. 29)—RBX Corp. and its subsidiaries said it has exited Chapter 11 bankruptcy protection concurrent with a new financing package that went into effect Aug. 27. The closed-cell rubber, plastic foam and rubber compound producer completed the exit financing which was then confirmed July 12 and was required to put a restructuring plan into place, according to a company statement. Under the terms of the loan agreement with the Congress Financial Corp., a division of First Union Corp., RBX has access to a $35 million revolving credit facility as well as an additional $10 million term loan earmarked for capital expansion and modernization, the firm said. The reorganization will allow the company to eliminate in excess of $200 million in long-term debt while strengthening existing business and seeking new markets and applications. "We are absolutely delighted to be headed back to normalized operating conditions just over seven months from seeking protection," said Timothy Bernlohr, president. "With our focused business plan, streamlined operations and a far healthier balance sheet and capital structure, we are focused squarely upon providing excellent service to our customers and expanding our effectiveness and presence as the industry's leader."