Ingersoll Internatl closes U.S. operations, may file for Chapter 11 protection
Ingersoll International today announced it has discontinued operations and may file a voluntary Petition seeking Chapter 11 protection in U.S. Bankruptcy Court.
The closing affects Ingersoll International and its U.S. subsidiaries only; the companys wholly-owned German subsidiary, Ingersoll Maschinen und Werkzeuge GmbH, will continue operations.
In making the announcement to employees, George H. Dorkhom, Ingersolls president and chief executive officer, said: We took this step today after carefully considering all other options; in the end, it was the only course available to the company.
An extremely competitive business environment, coupled with a sagging global economy, has pushed the machine tool industry into a worldwide depression, Dorkhom said.
The company made significant progress in cutting costs including the paydown of debt over the last several quarters and returning the company to profitability during this current fiscal year.
As previously announced, the company had retained investment banking advisers to assist in evaluating strategic alternatives, including restructuring of its bank debt and the possible sale of certain assets. Unfortunately, mutual agreement could not be reached between interested parties and lenders.