Rockford Products Secures Operational Financing

Jason Sandefur

Days after filing Chapter 11 bankruptcy, Rockford Products Corp. completed a debtor-in-possession financing arrangement with Bridge Finance Group. The facility includes a $20.5 million revolving line of credit and a $6 million term loan.
Founded in 1929 as Rockford Screw Products, employee-owned Rockford Products manufactures and distributes ball studs, cold formed fasteners and other specialty products. The company, which has 515 employees, reported 2006 sales of $101 million.
“This financing will allow us to focus on the operations of the business. We anticipate a smooth transition into and out of bankruptcy with the help of Bridge,” said Rockford Products CEO Ray Wood.
Slow automotive products sales and rising pension costs pushed company officials to seek court protection while they look for a buyer.
The new financing comes four months after FIN reported Rockford Products completed a $27.5 million credit arrangement.
Rockford Products has tried to grow globally. But the company lost a key $30 million contract when Whirlpool acquired Maytag in early 2006 and phased out Rockford Products as a supplier. Web: rockfordproducts.com �2007 FastenerNews.com