Doskocil to restructure debt, may file Chapter 11

St. Louis, Mo., Sept. 24 - Doskocil Manufacturing Co. announced Monday it has arrived at a plan to restructure its debt, with a prepackaged Chapter 11 as one option to carry out the process.

The company has reached agreements in principle with the lead bank of its lending group, as well as holders of its 10 1/8% senior subordinated notes due 2007, and the company's majority shareholder, according to Larry Rembold, president and chief executive officer of the Arlington, Texas-based plastics molding and manufacturing business. The majority shareholder has committed to make a substantial additional investment in Doskocil as a part of the restructuring.

Doskocil will effectuate the restructuring either by means of an out-of-court transaction or prepackaged Chapter 11 filing.

Rembold declined to comment on the specifics of the restructuring plan when Prospect News contacted him Monday.

"This is very positive for the company, and very positive for everybody who is a party to the restructuring," Rembold said.

"We're in a good industry," he added. "It's a growing industry, and we have good plans for the future."

In its announcement Doskocil said the financial restructuring will not impact day-to-day operations with regard to its employees, customers, suppliers and distributors. Doskocil's trade creditors have been paid on current terms and this will continue throughout the restructuring.

Doskocil engaged investment banking firm, Chanin Capital Partners to assist in the restructuring. Doskocil intends to complete the restructuring by the end of this calendar year, however, it added that it cannot give an assurance that the restructuring will be completed by that date or on the terms contemplated.

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