ORLANDO-Gencor Industries Inc., an international manufacturer of commercial road machinery, is reorganizing under Chapter 11 of the US Bankruptcy Code and agreeing to repay its $110.4-million debt load to lenders. The lenders, in turn, agree to forego interest on the debt. They are also allowing Gencor to spend $1.2 million to retain key executives to keep operating the business. None of the money, however, is going to the E.J. Elliott family which founded Gencor 30 years ago.

Gencor fought filing for bankruptcy protection, arguing it was solvent. The lenders, meanwhile, were preparing to ask US Bankruptcy Judge Karen Jenneman to place Gencor into involuntary bankruptcy protection. But within hours of the lenders’ filing, the Orlando company agreed to restructure itself.

Gencor is making an immediate cash payment of $7.4 million and promises to repay a total of $67 million by March 31, 2001. That money is expected to come from the sale of the firm’s animal-feed division that Gencor bought four years ago for $72 million. The balance of the debt will be repaid from the company’s operations.

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