Kansas City, Mo. — CST Industries Inc., the Kansas City-based maker of metal storage tanks and aluminum storage domes, including resin silos, has filed for Chapter 11 protection from creditors and is seeking a new owner.
CST filed a voluntary Chapter 11 on June 9 at the U.S. Bankruptcy Court in Wilmington, Del.
CEO Tim Carpenter said CST's legacy debt burden "has until now been an impediment to growth." The Chapter 11 filing, he said, "will result in a significant reduction in debt, a strong balance sheet, and possibly, a new owner who shares our vision."
CST officials said the business will continue unaffected, and the company has sufficient liquidity to fund operations. Customer service and sales will continue, vendors and suppliers will be paid and employees will continue to get regular pay and benefits, the company said.
CST claims to be the world's largest tank and dome maker. The company serves a wide range of industries, including agriculture, plastics, petrochemicals, food, oil and gas, water and storage for hydraulic fracturing, and both potable water and wastewater. CST has five manufacturing facilities: four in North America and one in the United Kingdom.
CST is owned by Sterling Group, a Houston private equity firm that invests in middle-market companies. Sterling bought CST in 2006. In 2012 TPG Investments LLC of Kansas City made an investment in the storage tank maker.
Carpenter said that with the Chapter 11, "the company has taken an important step in securing the future for its employees, customers and other stakeholders."
Carpenter said CST has been in talks with "numerous interested parties" about buying the company.
