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Gencor Reluctantly Files for Chapter 11 Protection

ORLANDO-Fighting a bankruptcy-filing petition to the 11th hour, the 30-year-old, international manufacturer of commercial road machinery agrees to reorganize and start paying off its $110.4-million debt load to lenders. The Chapter 11 filing avoids a protracted federal Bankruptcy Court trial.

By Alex Finkelstein | Updated on September 13, 2000

ORLANDO-Gencor Industries Inc., an international manufacturer of commercial road machinery, is reorganizing under Chapter 11 of the US Bankruptcy Code and agreeing to repay its $110.4-million debt load to lenders. The lenders, in turn, agree to forego interest on the debt. They are also allowing Gencor to spend $1.2 million to retain key executives to keep operating the business. None of the money, however, is going to the E.J. Elliott family which founded Gencor 30 years ago.

Gencor fought filing for bankruptcy protection, arguing it was solvent. The lenders, meanwhile, were preparing to ask US Bankruptcy Judge Karen Jenneman to place Gencor into involuntary bankruptcy protection. But within hours of the lenders’ filing, the Orlando company agreed to restructure itself.

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