Friday, 7 April 2000
PLASA EXCLUSIVE:PLASA Publishing has this afternoon learned that US-based Matthews Studio Equipment Group - one of the largest suppliers of professional equipment to the entertainment industry, has today announced that it has filed a voluntary petition for reorganisation under Chapter 11 of the United States Bankruptcy Code. The NASDAQ-listed company supplies conventional and automated lighting, grip, transportation, generators, camera equipment, audio and video equipment and theatrical supplies via its worldwide distribution network.Carlos D. DeMattos, chairman and CEO, said: "We have spent the past several months attempting to come up with a proposal that would address the company's challenges outside of a court proceeding. Ultimately, the time required to complete a restructuring transaction and the uncertain cost of closing unprofitable locations were too great to overcome."He continued: "This procedure will bring order to a disorderly process. It should have little or no impact on our customers, our vendors, or our employees. We intend to continue to compete vigorously in all of our markets and to work diligently to meet the needs of our customers."Certain of Matthews' subsidiaries were included in the filings as a result of last-minute demands by the company's lenders, to which the company was forced to accede.