Environmental Elements files Chapter 11 case

Jul 04, 2005. /Lesprom Network/. Environmental Elements Corporation announced on July 1 that it has filed a Chapter 11 case under the U.S. Bankruptcy Code in Baltimore. According to Lisa Poulin, EEC's recently hired Chief Restructuring Officer, the filing is in response to changes in the industry, increased competition and increases in prices for steel and other raw materials resulting in sustained operating losses in North America. EEC's European operation, which has had significant growth and is profitable, is not included in the Chapter 11 filing. The company also announced that it would use the Chapter 11 case as a vehicle for a sale of all of its business operations including its European operation. It has retained FTI Capital Advisors, LLC as its marketing and sales agent. Mercantile Safe-Deposit & Trust Company has agreed to extend debtor-in-possession financing to the company during the Chapter 11 case. Mercantile was the company's working capital lender before the case was filed. Environmental Elements Corporation is a solutions-oriented provider of innovative technology for plant maintenance services, air pollution control equipment and complementary products. The company has served a broad range of customers in the power generation, pulp and paper, waste-to-energy, rock products, metal and petrochemical industries for over 55 years.