Encompass files reorganization plan with bankruptcy court; company expects to be financially stable in 2Q 2003.
Encompass Services Corp. intends to retrench into a residential service organization, according to the reorganization plan the company filed on March 5, 2003, with the U.S. Bankruptcy Court for the Southern District of Texas. In it Encompass detailed plans to focus on its Residential Services Group, which provides plumbing and HVAC services for mostly single-family and low-rise multifamily homes, and small commercial buildings. About 80 percent of the group's 2002 revenue came from new construction, the company stated in court documents.
"We have made significant progress with our restructuring efforts in a short period," said Michael F. Gries, chief restructuring officer of Encompass, in a statement. "We expect to emerge from Chapter 11 in the second quarter of 2003."