Reliable Castings Corporation files for Chapter 11 bankruptcy
On July 25, 2023, Reliable Castings Corporation, a longstanding supplier of quality aluminum and non-ferrous castings since 1922, filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code.
Chapter 11 bankruptcy is commonly known as a "reorganization" bankruptcy. In this type of bankruptcy, the debtor remains "in possession" and retains the powers and duties of a trustee. This means that the company can continue to operate its business during the bankruptcy proceedings. Additionally, with court approval, the debtor may be allowed to borrow new funds to support its operations and restructuring efforts.
The primary goal of Chapter 11 bankruptcy is to enable the company to reorganize its financial affairs and address its debts while continuing its business operations. As part of this process, the company will propose a plan of reorganization that outlines how it intends to repay its creditors and emerge from bankruptcy in a stronger financial position.
Despite the challenges faced by Reliable Castings Corporation, the company's longstanding history as a reputable supplier of quality aluminum and non-ferrous castings underscores its potential to weather this difficult period and continuing to serve its customers in the future.