AMF Bowling Files for Bankruptcy
RICHMOND, Va. (AP) _ AMF Bowling Worldwide, the world’s largest operator of bowling centers, filed for bankruptcy protection Tuesday under a plan that would allow it to repay debt and restructure its operations.
AMF said in April that it would likely file for Chapter 11 protection under the federal bankruptcy code to help it reorganize.
Lenders have agreed to provide the Mechanicsville-based company with up to $75 million in financing so it can keep funding its own operation, company officials said.
``We will continue welcoming customers at our bowling centers and will continue to make and sell our bowling products,″ Roland Smith, AMF’s president and chief executive said in a news release.
AMF’s 518 centers will remain open. The company operates 400 centers in the U.S. and 118 centers in 10 other countries.
Under the company’s reorganization plan, AMF will repay loans with a combination of cash, debt and common stock worth about $625 million. Details of the company’s reorganization plan will be submitted to the U.S. Bankruptcy Court in Richmond in August for approval.
The company expanded aggressively in 1997 and 1998, growing from 285 bowling centers in 1996. But it posted a $226 million loss in 1999 and a $200.6 million loss in 2000, company officials said.
On the Net:
AMF Bowling site: http://www.amf.com