ENDICOTT — Endicott Interconnect Technologies, Inc. (EIT), and its wholly owned subsidiary EI Transportation, LLC, today filed for Chapter 11 bankruptcy protection.
That word is part of a letter to employees dated July 10 from David Van Rossum, chief restructuring officer.
The company forwarded the letter to The Central New York Business Journal and its sister publication, The Greater Binghamton Business Journal.
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The filing with the U.S. Bankruptcy Court in Utica allows the company to restructure its finances while continuing to manufacture advanced electronic products.
EIT incurred operating losses of nearly $100 million between 2009 and 2012, leaving the company unable to meet its debt of $70 million, and making Chapter 11 the only viable solution, Van Rossum wrote in the letter.
“External factors, including the economic recession of 2008 and recent U.S. government sequestration have contributed to the drop in revenue for the company,” Van Rossum said.
During the restructuring, EIT will remain open and plans to meet its commitments to all customers.
The company will continue monitoring workforce levels, which are based on customer demands.
Employee wages and health benefits are not expected to change as a result of the Chapter 11 filing, Van Rossum said.
Contact Reinhardt at ereinhardt@cnybj.com
