Eichleay in Receivership
Staff -- Consulting-Specifying Engineer, 9/1/2002
Unable to withstand the weakened economy—particularly the faltering manufacturing industry—Eichleay, a 127-year-old, Pittsburgh-based engineering, procurement and construction firm has gone into receivership.
"The company had suffered significant financial losses and it basically had run out of cash," says Margaret Good, founder of The Meridian Group, Pittsburgh, the consulting firm appointed to take over, manage and ultimately sell Eichleay's assets.
Eichleay, which primarily designs and builds industrial facilities, still has more than 100 projects on the board that are slated to be completed, but no new work will be accepted.
The majority of Eichleay's financial losses have been attributed to its dependence on the steel industry, as eight of the firm's major clients, including Bethlehem Steel and Wheeling-Pittsburgh Steel, have gone bankrupt in the last 18 months.
Receivership, as opposed to bankruptcy, is not only a less expensive option for Eichleay, but it offers the firm more flexibility to continue conducting business and to look for buyers. The drawback is that the company is not as protected from lawsuits as would be the case with bankruptcy.
