Coast Crane Files for Chapter 11

Coast Crane Co., Seattle, Wash., has voluntarily entered proceedings under Chapter 11 in the U.S. Bankruptcy Court in Seattle. It also has entered into an asset purchase agreement with private investment firm Clearlake Capital Group to acquire virtually all of the company's assets, subject to an auction and bankruptcy court approval. Coast Crane expects to complete the sale process within 90 days.

According to Coast Crane, it has secured debtor-in-possession financing from its existing lenders, which will provide working capital to fund operations and allow it to meet its employee, customer, and supplier commitments throughout the sale process. Coast Crane also has filed a series of first day motions seeking bankruptcy court approval of various types of relief designed to support all constituents, including honoring customer deposits, employee payroll, and sales tax, and to approve an auction and sale process.

"We are taking this step to better position our company for the future," stated Dan Goodale, Coast Crane's 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."