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Apr 1, 2003 12:00 PM

Rand McNally & Co has filed for Chapter 11 bankruptcy protection from creditors. The company filed in Chicago with the United States Bankruptcy Court for the Northern District of Illinois. Skokie IL-based Rand McNally said in January 2003 it agreed to turn over a majority ownership stake to Los Angeles CA-based buyout firm Leonard Green & Partners, which had acquired about $180 million of the company's $300 million in loans.

The agreement envisioned that Rand McNally, a 147-year-old privately held company, would seek a pre-packaged Chapter 11 bankruptcy after agreeing with creditors on a restructuring plan.

“The restructuring plan will significantly reduce our debt and is designed so that normal business operations continue, with no effect on customers, vendors, operations, or employees,” said Michael K Hehir, president and chief executive officer. He said the company's indebtedness will be reduced from about $350 million to $100 million.