However, company officials stressed it is not going out of business.
Company CEO Jim Orchard said the company, which has a plant in Easley, has made significant progress over the lat 12 moths to improve its cost structure and operations and that filing for bankruptcy is just the next step in that process.
“We plan to continue to purchase goods and services and fulfill all customer orders,” Orchard said.
Orchard said none of the company’s operations outside the United States were included in the filing.
He also said Mark IV’s Intelligent Vehicle Highway Systems were also excluded.
Mark IV, based in Rochester Hills, Mich., has a commitment for up to $90 million in debtor-in-possession financing from a group of lenders led by J.P. Morgan, Orchard said.
“Access to this financing, which requires court approval, means Mark IV has the ability to pay suppliers and employees in the ordinary course of business going forward,” he said.
The company has also reached an agreement in principle with a steering committee of its senior leaders on a plan of reorganization and new capital structure for the reorganized company.
“As a result, the company expects to achieve plan confirmation and successfully complete the reorganization expeditiously,” Orchard said.