WHITE PLAINS, N.Y. — RailWorks Corporation, a leading provider of integrated rail and transit system products and services in North America, won approval on September 23, 2002 from the bankruptcy court in Baltimore, Md., of its reorganization plan under Chapter 11 of the U.S. Bankruptcy Code. This approval clears the way for the company to emerge from bankruptcy. RailWorks will operate as a privately held company under the direction of a new executive leadership team, and with the support of new financial partners, the company announced in a press release.
“The successful reorganization of RailWorks has resulted in a stronger, more focused company in the rail services industry,” said Ab Rees, chairman and chief executive officer of RailWorks Corporation. “The Chapter 11 process provided RailWorks with the opportunity to address its financial and capital structure challenges in an orderly and comprehensive fashion. RailWorks emerges with not only a strong financial position, but also better integrated operations and a dedicated workforce committed to excellence.”
RailWorks filed for bankruptcy protection on September 20, 2001, and filed a Plan of Reorganization with the U.S. Bankruptcy Court on March 15, 2002. As part of the plan, RailWorks has undergone a significant restructuring designed to ensure the company’s success in continuing to provide services to North American’s railroads, mass transit and light rail systems, and commuter rail lines. The company integrated all of its nearly 50 specialized subsidiary companies into two divisions — Transit Systems and Track Products & Services — operating under the RailWorks Corporation name.
“The company has worked hard to prepare for this important day. I am grateful to our employees, customers, and business partners who have supported our determination to create a stronger, more focused RailWorks,” said Jim Kimsey, president and chief operating officer for RailWorks Corporation.
RailWorks Corporation was formed in 1998 to capitalize on the growing need for rail construction, maintenance, and materials solutions. This increased demand for rail service support was brought about by rail industry consolidation, federal funding of rail infrastructure improvements, and demand by manufacturers for modern rail infrastructure in their facilities.
About RailWorks
RailWorks Corporation, founded in March 1998, is an integrated, specialized supplier of construction, maintenance, materials, products, and services for the rail and transit industry throughout North America. With revenues of $550 million, RailWorks is a leading provider of integrated rail systems services and products in the United States and Canada.