Republic Financial Corp., Denver, a privately held investment company, announced that its partially owned subsidiary GR Investment Holdings L.L.C. has completed the purchase of a controlling interest in generalRoofing Services Inc. (gR), the nation's leading contractor and provider of commercial and industrial roofing solutions.
At the same time Republic said that, as a result of the transaction, gR has filed to reorganize under Chapter 11 of the Bankruptcy Code in order to obtain better access to working capital and to restructure its balance sheet to more realistically reflect current market conditions and provide the appropriate financial foundation for sustainable growth in the future. The filing took place in U.S. Bankruptcy Court for the Northern District of Texas in Dallas.
GR Investment Holdings has purchased the approximately $46 million senior debt facility and committed $25 million in debtor-in-possession financing. It believes this is sufficient to fund post-petition operating expenses and supplier and employee obligations.
"This transaction provides gR with an opportunity to restructure and become more efficient," says Bart Roggensack, a former director of gR who has been named chief executive officer of the company. "With Republic as an active participant in our business, we have acquired both the financial and management resources we need to realize the promise of a truly national roofing company that meets the roofing needs both of large national accounts and local builders and developers. The filing will enable us to continue to operate the business while we develop a realistic capital structure and business organization under which gR can become a profitable business in the future."
The company said that during the reorganization, daily operations would continue as usual. It also said it planned to accelerate efforts to consolidate and become a leaner, more efficient and cost-effective organization.
