American Architectural Products Corp. has filed for Chapter 11 protection under the U.S. Bankruptcy Code.
The manufacturer and distributor of windows, doors and related construction products blamed its high debt, inability to achieve savings that it had projected in some recent acquisitions and operating challenges in some business units.
The Miami-based company is continuing all normal business operations, said Doug Thomas, chief financial officer.
"Actually, it's very good for the company," Thomas said of the company's Dec. 18 filing in the U.S. Bankruptcy Court in Cleveland. The reorganization will leave the company better off financially, he said.
A new president has taken over and there have been new cash controls implemented, Thomas said. The company also has an extended credit line of $35 million through the CIT Group/Business Credit Inc. Previously, their credit line was $25 million.
"Our individual units are profitable," Thomas said of the company's subsidiaries that include Lexington, N.C.-based Binnings Building Products Inc. and Columbus, Ohio-based American Glassmith Inc.
"The decision to file for Chapter 11 protection was a difficult one although necessary to complete the restructuring plan with our bondholders and others," said President and Chief Executive Officer Joe Dominijanni in a news release.
Just three years ago, the company acquired several window and door fabrication companies including Easco Inc., renamed VinylSource Inc., of Girard, Ohio, and Binnings Building Products Inc.