American Gilsonite has reached an agreement for reorganization under chapter 11 of the U.S. Bankruptcy Code. The Bonanza company, founded in 1886, was authorized $30 million dollars in financing through the U.S. Bankruptcy Court on October 26th. American Gilsonite CEO David Gallagher explains that the agreement reached with financial stakeholders recognizes the underlying strength of the company. “American Gilsonite has positive operating cash flow, a highly differentiated product offering, more than 100 years of mineral reserves and a broadly diversified customer base,” says Gallagher. “With the implementation of this prepackaged reorganization plan, we will significantly strengthen the company’s balance sheet and create a capital structure that is more sustainable over the long term.” Gilsonite is a naturally occurring hydrocarbon resin that is primarily used as a performance additive in oil and gas drilling as well as other industrial applications.
