LDR Industries reflects on bankruptcy

Though LDR Industries, a Chicago-based plumbing products company, filed for Chapter 11 bankruptcy on Thursday, its owners expressed optimism over its prospects for a sale.

"LDR is a strong viable business," said Bill Underwood, president and CEO. "It is currently involved in a dispute with U.S. Customs, and this is the best way to resolve that dispute."

LDR will be able to continue meeting its customers' fill rate and service requirements, as well as pay its suppliers and creditors. The bankruptcy will merely help LDR fight back against the Customs claim without having to pay the duties claimed.

"This is being done for many reasons, but the primary reasons are: To ensure continuity of a great business that, except for the customs dispute, would otherwise be continuing as it has since our founding in 1971 as a leading importer and manufacturer of plumbing products;" read a company statement. "To protect its customers and to continue to meet its customers' product, fill rate and service needs; To protect its suppliers' ongoing business into the future while also insuring being able to pay the amounts of its pre-petition debts to those suppliers at the highest level possible; To protect the jobs of the loyal LDR employees that have made LDR what it has become."

The bankruptcy filing applies to LDR's U.S. distribution organization, not its Asian manufacturing businesses. No employees are to be layed off for the time being.

At the moment, there are a handful of interested buyers, one of which has submitted a letter of intent.