Coast Crane Files for Bankruptcy Protection; Investors to Acquire Assets

Sept. 27, 2010
Coast Crane Co., a leading Seattle-based crane rental specialist covering the West Coast, Alaska, Hawaii and Guam, has entered Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court in Seattle. Coast Crane also said it has entered into an asset purchase agreement with “stalking horse” bidder Clearlake Capital Group., a private investment firm, to acquire “substantially all” of the company’s assets, subject to an auction and bankruptcy court approval.

Coast Crane Co., a leading Seattle-based crane rental specialist covering the West Coast, Alaska, Hawaii and Guam, has entered Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court in Seattle. Coast Crane also said it has entered into an asset purchase agreement with “stalking horse” bidder Clearlake Capital Group., a private investment firm, to acquire “substantially all” of the company’s assets, subject to an auction and bankruptcy court approval.

Coast Crane secured Debtor-in-Possession financing from existing lenders, to provide sufficient working capital to fund operations and allow the company to meet its employee, customer and supplier commitments through the sale process.

“We are taking this step to better position our company for the future,” said Dan Goodale, Coast Crane CEO. “The recent economic downturn and the impact on the construction industry in particular, had impacted our balance sheet and our banking facilities. Our market position however has remained strong and we continue to provide our customers with the industry’s best products and services. With the new DIP facility and cash from operations, we have the financial resources to honor all of our future commitments and have every intention of doing so. We fully expect to emerge a stronger company.”

Coast Crane expects to complete the sale process within 90 days or less and is conducting business as usual. The company’s legal advisor is KL Gates, it’s financing and restructuring advisor is CRG Capital Partners; and its investment banker is Oppenheimer & Co.

Coast Crane is No. 34 on the RER 100.