Ozark, MO, March 06, 2009 --(PR.com
)-- Plans to Complete Sale in Bankruptcy Within 60 Days.
SLS International, Inc. (Pink Sheets: SLSZ) announced today that it filed a voluntary chapter 11 petition in the United States Bankruptcy Court for the District of Delaware. The Company announced that it intends to conduct a sale of substantially all of its assets using a section 363 sales process. The Company and Midwest Business Credit, LLC have agreed to debtor in possession (DIP) financing to ensure uninterrupted operations of the business during the bankruptcy.
This process will significantly improve the Company’s balance sheet and liquidity. The Company has secured the continued availability of its revolving credit facility as a source of DIP financing. These additional funds along with the Company’s continuing cash collections should provide sufficient resources to meet the Company’s ongoing obligations. The Company plans to continue operations as is with no interruption in the delivery of products to its customers throughout the United States and Internationally.
“In today’s economic environment, we are pleased to have achieved such strong support for a sale of the business that is beneficial to our employees, customers, and vendors by dramatically improving our balance sheet, eliminating some secured debt obligations, and enabling continued investment in our future growth. This process will give SLS a strong balance sheet, and allow us to take advantage of opportunities in the current economic environment while continuing to provide exceptional products to our customers. We look forward to the continued support of our senior lender and its commitment to the business,” stated Chairman and CEO John M. Gott.
The Company plans to complete the sale and emerge from bankruptcy as quickly as possible. The Company is represented by Frederick B. Rosner, Esquire of Messana Rosner & Stern LLP.