Encompass Services Corp. has secured debtor-in-possession (DIP) financing and additional surety bonding capacity to use during its reorganization process, according to a recent article in the Houston Business Chronicle.
The Houston-based Encompass inked a deal with a syndicate of financial institutions including Bank of America, JPMorgan Chase Bank and General Electric Capital Corp. for a $60 million DIP financing commitment. Encompass said the funds will provide it with adequate liquidity during its Chapter 11 bankruptcy process, and help pay employee salaries and benefits and vendor payments. The provider of electrical and mechanical services filed for bankruptcy protection Nov. 19.
Several electrical distributors are among Encompass' largest unsecured creditors, according to court documents of the United States Bankruptcy Court, Southern District of Texas, Houston. These companies include: The Reynolds Co., Dallas ($8,273,000); GE Supply, Smryna, Ga. ($3,685,000); Graybar Electric Co., St. Louis ($3,570,000); Hughes Supply Inc., Orlando, Fla. ($3,264,000); Crescent Electric Supply Co., East Dubuque, Ill. ($1,648,000); Anixter Inc., Skokie, Ill. ($1,096,000); WESCO, Pittsburgh ($928,000); and Brown Wholesale Inc., Phoenix ($674,000).