MCM REORGANIZING UNDER CHAPTER 11

MCM REORGANIZING UNDER CHAPTER 11

 

D.I.P. FINANCING

COMMITMENTS EXCEEDING $18 MM TO FUND COMPLETION OF PENDING JOBS

 

Operations continue as all bonded projects remain on track for completion

 

MIAMI, FL – March 1, 2019 – Magnum Construction Management, LLC, f/k/a Munilla Construction Management, LLC (MCM), a market leader in the construction industry for more than 35 years, announced today that it is implementing a restructuring and recapitalization of the Company through a substantially pre-negotiated Chapter 11 plan of reorganization.  Chapter 11 provides the opportunity for all of the claims asserted against the Company, including those arising from the failure of the University City Prosperity Project, to be addressed comprehensively in one forum. The restructuring has the support of MCM’s sureties.

 

The filing of the Chapter 11 Case is not an attempt to avoid any responsibility that might be assigned to the Company for the collapse of the bridge.  The Company intends to resolve those claims as part of the restructuring.

 

Going forward, MCM has obtained commitments for debtor-in-possession financing from its sureties that will enable the Company to complete construction of its bonded projects.   MCM remains dedicated to delivering quality work—a commitment that has made it a successful company for more than three decades.     

 

“We are focused on implementing a reorganization of the business that will enable us to complete our pending projects and position the company to pursue future opportunities,” Jorge Munilla, president of MCM, said. “The plan will also address the company’s liabilities, especially those related to the failure of the University City Prosperity Project.”

 

The failure of the pedestrian bridge that was constructed to connect FIU’s Maidique Campus with the Town of Sweetwater is under National Transportation Safety Board investigation. MCM will continue to cooperate with investigators as it has since they began their work approximately one year ago.

 

“Our prayers continue to be with the families of those we lost and everyone in our community that was impacted,” Munilla said.

 

As part of the filing, MCM is seeking relief from the court to ensure uninterrupted payment of employee wages and benefits and continuation of customer programs. The filing is in the United States Bankruptcy Court for the Southern District of Florida.

 

“MCM’s doors are open, and the company continues to conduct business as it navigates this process,” added Munilla. “As always, our management team and employees remain focused on doing great work for our valued customers. The reorganization will have minimal impact on operations.”

 

About MCM

With 35 years of experience in the construction industry, MCM is a Miami-based, family-owned full-service general contractor that specializes in general building and heavy civil construction with a proven track record of successfully delivering diverse and very complex projects. MCM provides construction services to public agencies and private clients. The firm has experience in pre-construction services, construction management, design-builds, public-private partnerships, and traditional competitive bids.

 

 

CONTACT:  For more information, visit www.mcm-us.com/faq or call (305) 541-6869. For media inquiries, please contact Don Silver or Laura Burns of Boardroom Communications at

(954) 370-8999 / (954) 629-7523 or via email at:

 donsil@boardroompr.com lburns@boardroompr.com.