KANSAS CITY, Mo., June 12, 2017 (GLOBE NEWSWIRE) -- CST Industries, Inc., (the “Company”) the world’s largest and leading tank and dome manufacturer, today announced that it is taking steps to rightsize its balance sheet and potentially identify a new partner that shares the CST vision. To facilitate this, CST filed a voluntary chapter 11 petition in the United States Bankruptcy Court for the District of Delaware (the “Court”) on June 9, 2017.
CST’s business will continue unaffected and the Company has sufficient liquidity to fund operations. Customer service and sales will continue, employees will receive regular wages and benefits, and vendors and suppliers will be paid in the ordinary course of business going forward.
“CST continues to be the market leader, a position we've held for over 100 years, and we will continue to lead the market with the most advanced products and services. Through this process, the Company has taken an important step in securing the future for its employees, customers and other stakeholders,” said CST Chief Executive Officer, Tim Carpenter. “CST continues to make tremendous progress in achieving operational excellence and delivering a first-class customer experience. CST’s legacy debt burden, however, has until now been an impediment to growth. This will result in a significant reduction in debt, a strong balance sheet, and possibly, a new owner who shares our vision.”
“CST has been in discussions with numerous interested parties,” added Carpenter. “CST believes that its financial restructuring is best achieved under court supervision, as it provides a swift and efficient path with minimal impact on our valued stakeholders.”
The Company’s first-day hearing will take place on or around Tuesday, June 13, in Wilmington, Delaware. CST’s United Kingdom subsidiary is not included in or affected by the filing.
Court filings as well as other information related to the restructuring are available at http://dm.epiq11.com/CST or by calling the special restructuring information line 888-729-1610 (North America toll free number) or +1-503-597-7670 (international callers).
Hughes Hubbard & Reed LLP and Potter Anderson & Corroon LLP are serving as legal counsel, and CDG Group as financial advisors and investment bankers.
About CST
CST’s existing company portfolio consists of CST Storage, CST Covers and Vulcan Tanks. Five manufacturing facilities and technical design centers and multiple regional sales offices are located throughout North America and the United Kingdom. International offices are located in Argentina, Australia, Brazil, India, Japan, Malaysia, Mexico, Myanmar, Panama, Singapore, South Africa, Spain, United Kingdom, United Arab Emirates and Vietnam. Currently, more than 368,000 CST tanks and covers have been installed in 125 countries throughout the world.