Friede Goldman Halter Inc., manufacturer of offshore equipment for the energy industry, on Thursday said it filed for protection under Chapter 11 of the U.S. bankruptcy code.
The announcement comes a day after the announcement that investment group Pegasus Partners II would not pursue an agreement to provide Friede Goldman Halter with a $100 million loan.
Friede Goldman filed its bankruptcy petition, allowing for reorganization of its debts, in the Bankruptcy Court of the Southern District of Mississippi. The company's 31 subsidiaries that are co-borrowers or guarantors also plan to file reorganization petitions, Friede Goldman said.
In connection with the bankruptcy filing, Friede Goldman has started a restructuring of its obligations with all creditors so that it may eventually emerge from Chapter 11 with enough resources to carry on its business.