ROANOKE, Va. (Feb. 25)—RBX Corp. and its operating subsidiary, RBX Industries Inc., have filed for relief under Chapter 11 of the U.S. Bankruptcy Code, the second time it has filed for protection in just over three years.
The filing in the U.S. Bankruptcy Court of the Western District of Virginia was made to maximize the value of the business, the company said in a prepared statement.
The companies have been able to negotiate a $17 million in debtor-in-possession loan with Congress Financial Corp. to insure the businesses will have the working capital needed to support their continuing operations and purchase post-petition raw materials to fill customer orders, they said. The firms will need court approval of the financial arrangement.
RBX and its subsidiary also will ask the court for permission to continue to pay employees salaries and cover benefits, they said.
In early February, RBX Industries said it will close three of its six U.S. plants in April and exit the custom mixing business. It will shut down facilities in Tallapoosa, Ga.; Bedford, Va.; and Colt, Ark., which "should allow us to preserve maximum value of existing profitable operations in Buchanan, Va.; Conover, N.C.; and South Holland, Ill.," said Timothy J. Bernlohr, president and CEO of RBX Corp. and RBX Industries.