RathGibson loses $3.9 million for last half of July

RathGibson Inc., the manufacturer of welded tubing products that filed for bankruptcy reorganization on July 13, reported a $3.9 million net loss from the filing date through the month's end.

The loss from operations was $5.4 million on net sales of $11.8 million. The company has final approval for $80 million in financing provided by a group including Wayzata Investment Partners LLC.

RathGibson has agreement on a reorganization plan with holders of 73 percent of the $209 million in senior unsecured notes. The plan calls for paying unsecured creditors in full while noteholders receive a majority of the new stock. The Lincolnshire-based company listed assets of $305 million against debt totaling $319 million.

In addition to the $209 million in senior notes, debt includes $55.3 million on secured credit agreements and $10.4 million owed to trade suppliers. The holding company also is liable on $115 million in pay-in-kind notes.

A group including management and an affiliate of DLJ Merchant Banking Partners acquired control of RathGibson in June 2007. The case is In re RathGibson Inc., 09-12452, U.S. Bankruptcy Court, District of Delaware (Wilmington).