Acme Holdings Hires Firm in Strengthening Move
Acme Holdings Inc., an equipment rental company, has hired an investment banking firm to possibly refund or restructure $78 million in junk bonds the privately held company sold last year.
Donaldson Lufkin & Jenrette, the New York investment firm, will determine ways to strengthen Irvine-based Acme, which has posted nearly $16 million in losses in the past 16 months and has seen its longtime chairman abruptly resign in June.
Company officials could meet with major bondholders, which include several large private investment funds, as early as next week, said Rivian Bell, a company spokeswoman.
“We have retained DLJ to help us explore recapitalization alternatives and identify long-term solutions that will strengthen our balance sheet and position Acme for a strong, profitable future,” Martin Reid, Acme’s chairman and chief executive officer, said in a statement.
Reid replaced Ira Mendelsohn as chairman and chief executive officer June 15, when Mendelsohn resigned from the board of directors.
Acme, which operates 21 rental locations in four states, reported a loss of $14.1 million in 1993, compared to a $1.1-million loss the previous year. The company also reported a loss of $1.8 million for the quarter ending March 31, up from a loss of $992,000 during the same time last year. Revenue increased to $16.8 million from $15.3 million.