Magruder Color Company, Inc.has filed to reorganize its affairs under Chapter 11 of the Federal Bankruptcy Code. In connection with the reorganization, the company is in the process of considering various strategic alternatives and has obtained debtor-in-possession funding from Wachovia Bank, in the amount of $7.5 million. The financing facility will provide the funds needed during the reorganization process so the company will not experience disruptions in its business affairs.
“These announcements represent only the first steps being undertaken to reposition Magruder to better serve its customers,” said Joel Weissglass, Magruder Color’s president of administration. “As a result of the reorganization process and the establishment of a credit line with Wachovia, Magruder will be able to continue manufacturing operations and servicing customer needs in an uninterrupted manner. With regard to strategic alternatives, we are currently in the early stages of exploring a number of exciting opportunities.”