Rand McNally Exits Chapter 11 Protection

Rand McNally & Co., the world’s largest seller of maps, Monday exited bankruptcy protection after less than two months and is now under the majority ownership of Los Angeles-based buyout firm Leonard Green & Partners.

The company’s plan, which received the unanimous support of senior and subordinated lenders, converts much of the company’s $350-million debt load to equity.

Founded in 1856, Rand McNally comes out of bankruptcy protection with about $100 million of debt. The company and its Randmcnally.com Inc. affiliate filed a prepackaged Chapter 11 plan Feb. 11.

“Our financial structure was improved dramatically by a reduction of leverage,” said Chief Executive Michael Hehir.

The drop in air travel because of the war in Iraq also might help the company, he said.

“I think what we’re going to see is consumers traveling closer to home, and using cars more often than flying, and that could be very good for us,” he said.

Rand McNally, based in Skokie, Ill., won approval from an Illinois bankruptcy judge on March 19 for its reorganization plan.

The plan is designed to help it compete better with such online mapping providers as AOL Time Warner Inc.’s MapQuest and Microsoft Corp.’s MapPoint.

Leonard Green has a 60% equity stake in the reorganized company, and controls three of the seven seats on its board of directors. Peter Nolan, a managing director, will serve as nonexecutive chairman.

Hehir said Leonard Green is a potential future source of long-term capital, and mergers or combinations are “something we would look at in the right situations.”

Rand McNally sells printed maps and atlases, including its flagship Road Atlas as well as the Thomas Bros. guides.