Morton Industrial files for Chapter 11

Morton Industrial Group Inc., a manufacturer of engineered components and subassemblies for construction and agricultural equipment, filed a Chapter 11 petition yesterday in Delaware looking to sell the business.

The Morton-based company has five plants that generated $208 million in sales during 2008. The net loss for the year was $6.7 million.

Debt includes $14.4 million on a secured revolving credit, $33.3 million on a secured term loan, and $27.4 million on subordinated notes. Another $14.8 million is owing to trade suppliers.

Chapter 11 became necessary when sales fell 32 percent in January and February compared with the same period in 2008.

Morton has a $20 million secured credit for the reorganization supplied by National City Bank, as agent for the pre-bankruptcy lenders.

The company hopes to sign a buyer to a contract for the sale of the business before April. The sale will be subject to competitive bidding.

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The case is In re MMC Precision Holdings Corp. 09-10998, U.S. Bankruptcy Court, District of Delaware (Wilmington).