CRANE National General Crane Bought Out of Bankruptcy -...

8 CRANE National General Crane Bought Out of Bankruptcy General Crane USA has gotten the lift it needed to pull out of the eco- nomic downturn and rise out of bankruptcy. Prophet Equity, a Southlake, Texas-based firm, and General Crane co-owner and President Jim Robertson created Allegiance Crane & Equipment, which, in turn, purchased the assets of the Pompano Beach, Fla.-based company for $40 million. The deal was finalized after a bankruptcy court judge in Fort Lauderdale, Fla. approved the liquidation plan on Dec. 17. “In one fell swoop, the assets that were General Crane became the assets of Allegiance and the old set of encumbrances were dealt with,” Prophet Equity CEO Ross Gatlin said. As the Business Journal first reported in November, General Crane fell on hard times in 2009, filing for Chapter 11 following the collapse of the real estate market. At that time, there were more than 10 lenders owed more than $100 million. Robertson said he had been looking for someone to partner with, and Gatlin’s vision was aligned with his. “They are not looking for a five-year get-out,” Robertson said. “I was not interested in that. I was interested in a long-term relationship.” The deal received the blessing of the three major secured creditors — Wells Fargo, SL Financial and Bank Midwest — which had $62.4 million in secured claims. “It was a $40 million purchase, and the three major lenders were paid a substantial amount, and we agreed to terms and conditions of a restruc- tured loan,” Robertson said. “They didn’t come out completely whole, but they came out better than if we filed for liquidation.” Gatlin said the company is looking for opportunities in growth areas such as construction of schools, highways, ports, power plants and petrol refineries. “There’s a lot of good work out there, you just have to be active and target it,” he said. In addition, the company will be expanding its operations into growth markets in Alabama, Louisiana, Mississippi, Texas and Oklahoma. The company will move to a new headquarters at 777 S. Andrews Ave., in Pompano Beach, allowing it to consolidate its headquarters and maintenance facilities. CQ

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Transcript of CRANE National General Crane Bought Out of Bankruptcy -...

8

CRANE National

General Crane Bought Out of BankruptcyGeneral Crane USA has gotten the lift it needed to pull out of the eco-

nomic downturn and rise out of bankruptcy.Prophet Equity, a Southlake, Texas-based firm, and General Crane

co-owner and President Jim Robertson created Allegiance Crane &Equipment, which, in turn, purchased the assets of the Pompano Beach,Fla.-based company for $40 million.The deal was finalized after a bankruptcy court judge in Fort

Lauderdale, Fla. approved the liquidation plan on Dec. 17.“In one fell swoop, the assets that were General Crane became the

assets of Allegiance and the old set of encumbrances were dealt with,”Prophet Equity CEO Ross Gatlin said.As the Business Journal first reported in November, General Crane

fell on hard times in 2009, filing for Chapter 11 following the collapseof the real estate market. At that time, there were more than 10 lendersowed more than $100 million.Robertson said he had been looking for someone to partner with, and

Gatlin’s vision was aligned with his.“They are not looking for a five-year get-out,” Robertson said. “I was

not interested in that. I was interested in a long-term relationship.”The deal received the blessing of the three major secured creditors —

Wells Fargo, SL Financial and Bank Midwest — which had $62.4 mil-lion in secured claims.“It was a $40 million purchase, and the three major lenders were paid

a substantial amount, and we agreed to terms and conditions of a restruc-tured loan,” Robertson said. “They didn’t come out completely whole,but they came out better than if we filed for liquidation.”Gatlin said the company is looking for opportunities in growth areas

such as construction of schools, highways, ports, power plants and petrolrefineries.“There’s a lot of good work out there, you just have to be active and

target it,” he said.In addition, the company will be expanding its operations into growth

markets in Alabama, Louisiana, Mississippi, Texas and Oklahoma.The company will move to a new headquarters at 777 S. Andrews

Ave., in Pompano Beach, allowing it to consolidate its headquarters andmaintenance facilities. CQ