Coast Crane Company, a Seattle crane company, has filed for Chapter 11 bankruptcy. Coast is owned by Seattle-based Northwest Capital Appreciation, which bought the company in May 2007. The company has entered into an asset purchase agreement with a stalking horse bidder, Clearlake Capital Group, a private investment firm based in New York.
Coast Crane Company, the market leader for innovative lifting solutions on the West Coast, Alaska, Hawaii and Guam, today announced that is has voluntarily initiated proceedings under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court in Seattle. The Company also announced that it has entered into an Asset Purchase Agreement with “stalking horse” bidder Clearlake Capital Group, a private investment firm, to acquire substantially all of the Company’s assets, subject to an auction and Bankruptcy Court approval.
Coast Crane secured Debtor-in-Possession (“DIP”) financing from its existing lenders, which will provide sufficient working capital to fund operations and allow the Company to meet its employee, customer and supplier commitments throughout the sale process.
The Company has also filed a series of first day motions seeking Bankruptcy Court approval of various types of relief designed to support all constituents, including honoring customer deposits, employee payroll and sales tax, and to approve an auction and sale process. “We are taking this step to better position our Company for the future,” stated Dan Goodale, Coast Crane’s Chief Executive Officer. “The recent economic downturn and the impact on the construction industry in particular, had impacted our balance sheet and our banking facilities. Our market position however, has remained strong and we continue to provide our customers with the industry’s best products and services. I strongly believe we have the most qualified team in the industry and am proud of all of our employees accomplishments. With the new DIP facility and cash from operations, we have the financial resources to honor all of our future commitments and have every intention of doing so. We fully expect to emerge a stronger company and believe in our future.”
Coast Crane is pursuing Section 363 process to complete a sale of its assets, in an orderly and efficient manner, and expects to complete the sale process within 90 days or less. The Company expects no service interruptions whatsoever and is conducting business as usual.
The Company’s legal advisor is KL Gates; its financing and restructuring advisor is CRG Capital Partners; and its investment banker is Oppenheimer & Company.
About Coast Crane Company
Founded in 1970, Coast Crane Company has grown to become the market leader for innovative lifting solutions on the West Coast, Alaska, Hawaii and Guam. The Company provides both used and new construction equipment including terrain cranes, boom trucks, tower cranes, forklifts, aerial lifts and more. Products are rented and sold through a regional distribution network spanning 14 locations and covering over 3,000 customer accounts. Coast Crane enjoys strong working partnerships with the leading crane and lifting manufacturers in the U.S. and has a dedicated and unparalleled customer service and support team.