IL-based map-making company Rand McNally announced this week
that it would emerge from bankruptcy, but with a new owner.
147-year-old company announced Feb. 11 that it had filed
papers in the U.S. Bankruptcy Court for the Northern District
of Illinois for relief under Chapter 11 of the U.S. Bankruptcy
7, a statement from the company announced it had completed
a “financial restructuring and recapitalization,” and Leonard
Green & Partners, L.P., a Los Angeles-based private equity
firm, would now own a majority interest of the company.
company warned Jan. 14 that it would file Chapter 11 if it
received approval from its creditors for a plan to recapitalize
and reduce its debts. Rand McNally officials said that during
the process, the company's services would continue as usual.
restructuring plan … is designed so that normal business
operations continue, with no effect on customers, vendors,
operations or employees,” Michael K. Hehir, president and
CEO of Rand McNally, said in a statement.
indicated in a statement April 7 that the company was satisfied
with the outcome of the Chapter 11 process.
emergence from Chapter 11 … is great news for our customers
and employees,” he said. “We are now considerably stronger
company with significantly less debt. We are positioned to
expand on our leadership role in the mapping industry.”
Nolan, a managing partner at Leonard Green, said the 60-day
process had reduced the company's debt by more than $250
company had been headed toward acquisition for some time. Reuters news
service reported Feb. 13 that Rand McNally had invited bids
for the purchase of the company at an earlier date. Those
bids were due Sept. 12, 2001, and were delayed after the
September 11 attacks.