Tokheim files for Chapter 11

New York, Nov. 21 - Tokheim Corp. and its U.S. operating subsidiaries made a Chapter 11 filing in the U.S. Bankruptcy Court for Delaware.

The Fort Wayne, Ind. gas dispenser company said the filing would allow an orderly sale of its business units, while resolving short-term liquidity issues.

Operations outside the U.S. are not included in the filing.

Tokheim obtained $10 million in debtor-in-possession financing from a bank group led by ABN Amro to fund operations until the sale can be completed.

Following a strategic review begun in May, the company has decided to sell its operations either as a whole or by one or more of its main operating segments in order to meet its obligations.

Tokheim had previously warned it did not expect to have enough cash to meet principal and interest due on Nov. 30 unless it could restructure its credit facility or make other changes to its operations.

The filing is not the company's first visit to the bankruptcy courts; it emerged from a previous Chapter 11 filing in October 2000.

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