Coast Crane Co. of Seattle filed for Chapter 11 bankruptcy on Sept. 21, but the company has a plan to sell to New York’s Clearlake Capital Group within 90 days. The agreement will give the private investment firm substantially all of Coast Crane’s assets, subject to an auction and Bankruptcy Court approval.
The crane, forklift and equipment company serves the construction industry on the West Coast and in Alaska, Hawaii and Guam. Products are rented and sold through from its network of 14 locations, serving approximately 3,000 customer accounts.
It has assets between $50 and $100 million and liabilities between $100 and $500 million, according to the company. Exact figures will be released to the Bankruptcy Court in Seattle in the coming weeks.
“The recent economic downturn and the impact on the construction industry in particular had impacted our balance sheet and our banking facilities,” says Coast Crane CEO Dan Goodale in a statement.
The 40-year-old company expects the sale of its assets to take less than 90 days and anticipates no service interruptions.
“The company is taking these necessary steps to improve its future position and fully intends to honor all of its commitments on a go-forward basis—to its customers, suppliers and employees,” says a Coast Crane spokesperson. “There are no workforce reductions planned as a result of the reorganization.”