Instrumental in Saving Trapped Chilean Miners Nine Years Ago, Schramm Files for Bankruptcy

Image of Schramm via Google Maps.

Schramm, the West Chester-based drill manufacturer that was instrumental in rescuing Chilean miners who were trapped underground nine years ago, has filed for bankruptcy and is planning a sale in a court-supervised auction process, writes Tom Corrigan for The Wall Street Journal.

The company sought Chapter 11 protection in U.S. Bankruptcy Court in Wilmington, Del., last week. Schramm is now hoping to have the sale completed by September.

According to court papers, Schramm has already secured an initial offer of $16.3 million from GenNx360 Capital Partners. The private equity firm is Schramm’s existing lender and also owns a stake in Schramm’s bankrupt parent company.

The move was necessitated by a significant downturn in the oil-and-gas industry, which forced the company to idle some of its rigs.

Schramm gained global fame in 2010, when the company’s self-propelled rig was used to save 33 Chilean miners who were trapped by a cave-in almost a half-mile underground. The successful rescue effort took 69 days to achieve, but two months less than originally predicted.

Read more about Schramm in The Wall Street Journal here.

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