FREMONT, Calif. — Red Rose Inc. (RRI), Petersen-Dean Inc. (PDI) and certain of their subsidiaries/affiliates — including Solar 4 America and Roofs 4 America — announced they have commenced a voluntary restructuring under Chapter 11 of the U.S. Bankruptcy Code due to the effects of the on-going pandemic.
The Chapter 11 filing provides immediate protection to the companies, which will continue to operate in the ordinary course of business as they pursue either a restructuring or a sale for substantially all of their assets as a going concern.
According to a news release, the companies filed their voluntary Chapter 11 petitions in the U.S. Bankruptcy Court for the Southern District of Nevada. During the case, the companies and their 18 regional offices are operating as usual. Petersen-Dean reported $178 million in revenue in 2018, placing it sixth on the 2019 Top 100 Roofing Contractors list.
“After a diligent review of our financial alternatives, our management, along with our advisors, concluded that the best path forward for Petersen-Dean and its stakeholders is to seek Chapter 11 protection," said Jim Petersen, PDI’s founder and CEO. "Through this process, we intend to restructure our balance sheet to achieve a more sustainable debt level to reposition the business for long-term success.”
Petersen said PDI will remain focused on maintaining high standards as it relates to construction installations, and will continue to operate on all of its ongoing projects during the Chapter 11 process.
"Our clients and vendors should expect business as usual across our organization and we will stay steadfast on our collective goal of providing superior solar, roofing and battery installations that our clients have come to expect from our companies," he said.
The companies intend to use the proceedings to restructure and strengthen their balance sheet and achieve a more sustainable debt profile, while continuing to focus on roofing and solar installations across the country for their clients.
In addition to PDI and RRI, the following subsidiaries/affiliates are included in the Chapter 11 filings:
Beachhead Roofing & Supply, Inc.; California Equipment Leasing Association, Inc.; Fences 4 America, Inc.; James Petersen Industries, Inc.; PD Solar, Inc.; Petersen Roofing and Solar LLC; PetersenDean Hawaii LLC; PetersenDean Roofing and Solar Systems, Inc.; PetersenDean Texas, Inc.; Roofs 4 America, Inc.; Solar 4 America, Inc.; Sonoma Roofing Services, Inc.; TD Venture Fund, LLC; and Tri-Valley Supply, Inc.