Diamond Glass files for bankruptcy, sale; expects to continue serving automotive replacement market
KINGSTON, Pa. – Diamond Glass is assuring the industry that it will maintain normal business operations following its April 1 filing for Chapter 11 bankruptcy reorganization.
“Our firm is a healthy, growing business that has faced significant financial challenges stemming from our current debt,” said Bill Cogswell, Diamond’s president.
The company has obtained a debtor-in-possession financing commitment from Guggenheim Corporate Funding LLC -- its senior secured lender -- “to provide necessary liquidity during the Chapter 11 process,” he said.
The case is pending before the United States Bankruptcy Court for the District of Delaware.
“The Chapter 11 process, and the potential sale of the business to Guggenheim, will provide us with an opportunity to remove a large obstacle to our future success while allowing our employees to continue to serve our customers with the high-quality service they have come to expect,” Cogswell said. “We are optimistic that we will quickly emerge from this restructuring leaner, adequately capitalized and well-positioned for profitable growth.”
The action is the first step in a financial restructuring plan that Diamond expects to bring increased stability and continued service through its network of 217 service centers and 900 mobile installation vehicles in 42 states.
The company anticipates maintaining its current management and staff.
Cogswell said an important part of the restructuring plan under consideration involves selling the business to its senior secured lenders through Guggenheim.
An auction proposed for early June would allow other potential buyers an opportunity to better Guggenheim’s proposal, he said.
Under the terms of the purchase agreement, a significant portion of Guggenheim’s debt would be exchanged in-part for ownership of the business and other assets. If Guggenheim becomes the successful purchaser, it is expected to “carry on the business substantially in the same manner as it is carried on today,” according to Cogswell.
Founded in 1923 by the Levine family and headquartered in Kingston, Pa., Diamond has three distribution facilities in Kingston, Columbus, Ohio and Atlanta. It employs about 1,600 people including field technicians, customer service representatives, sales associates and corporate associates.
For more information, visit www.diamondtriumph.com.
