Rand McNally & Co. yesterday announced it has filed for Chapter 11 bankruptcy protection from creditors in Chicago with the U.S. Bankruptcy Court for the Northern District of Illinois.
Skokie, IL-based Rand McNally said in January it agreed to turn over a majority ownership stake to Los Angeles-based buyout firm Leonard Green & Partners, which had acquired about $180 million of the company's $300 million of loans.
The agreement envisioned that Rand McNally, a 147-year-old privately held company, would seek a prepackaged Chapter 11 bankruptcy after agreeing with creditors on a restructuring plan.
"The restructuring plan will significantly reduce our debt and is designed so that normal business operations continue, with no effect on customers, vendors, operations or employees," said president & CEO Michael K. Hehir, who added that the company’s indebtedness will be reduced from approximately $350 million to $100 million.
"Today’s filing represents a big step forward for the new Rand McNally and enables the company to continue its growth," said Peter Nolan, a managing partner at Leonard Green. "We are committed to support Rand McNally with the resources necessary to enhance its role as the industry leader."
In addition to maps, Rand McNally makes several software packages for the trucking industry.