Zamec back as president of former TriEnda thermoforming plant

By Frank Esposito
Senior Staff Reporter

Published: April 25, 2013 3:45 pm ET
Updated: April 25, 2013 4:09 pm ET

Image By: Plastics News Curt Zamec

Related to this story

Topics Mergers & Acquisitions, Thermoforming

PORTAGE, WIS. — Less than a week after being threatened with liquidation, Spara LLC on April 23 regained control of Lexington Logistics, a Wisconsin-based thermoformer that previously operated as TriEnda LLC.

Lexington, Ky.-based Spara said longtime TriEnda CEO Curt Zamec has returned to the firm as president.

Spara said it "has immediately deployed a management team to assess and stabilize" Lexington Logistics, a 150-employee firm based in Portage, Wis.

Cincinnati-based Fifth Third Bancorp had filed a complaint April 18 in circuit court in Columbia County, Wis., asking that Lexington Logistics be placed in receivership for non-payment of a loan totaling almost $23 million. According to court documents, a court-appointed receiver would have had the authority to liquidate the property in order to pay the debt.

Spara and its parent firm — Revstone Industries LLC of Southfield, Mich. — had filed for bankruptcy in December. But officials with Spara and with Huron Consulting Group — the Chicago-based firm working to restructure Spara and Revstone — said the bankruptcy will not prevent Spara from putting together a new business plan for Lexington Logistics.

"The purpose of the receivership action…was not to liquidate the company," a Spara spokeswoman wrote in an April 24 e-mail. "Rather, it was to facilitate a sale of the company to a new owner and to repay the Fifth Third loan."

Spara said it is collaborating with Fifth Third Bancorp.

"With the corporate governance now settled, Lexington Logistics intends to demonstrate the stability of the company and eliminate the need for Fifth Third to proceed with the receivership," she added.

Fifth Third "pulled back on the [receivership] hearing" in order to give Spara time to put together a new plan, said Jim Lukenda, a deputy chief restructuring officer with Huron.

In November, financial firm Boston Finance Group of Clearwater, Fla., had removed five TriEnda executives and placed Zamec on a leave of absence because of an unpaid loan. Spara had used the loan — which, according to court records, was for $6.7 million — to buy TriEnda in a foreclosure sale in June 2011.

When Boston Finance took over Lexington Logistics in November, five Boston Finance officials were installed as managers. Lukenda said in an April 25 phone interview that Fifth Third's $23 million loan to Lexington Logistics was separate from Boston Finance's loan to Spara.

In an April 24 phone interview, Boston Finance executives John Fernando and Jonathan Golden said they were "shocked" by Fifth Third's receivership filing and suggestion of liquidating the company.

"Our goal was to stabilize and run [Lexington Logistics] and we had worked aggressively to turn the company around in these last four or five months," said Fernando, who had served as the firm's president from November until January, when Mike Ceming was brought in. "We weren't interested in liquidating and eliminating jobs."

"Order flow and revenue were increasing, but [Fifth Third] chose not to work with us, and we don't understand why," he added.

Fernando described the Fifth Third filing as "a very extreme measure," adding that once it was made, Boston Finance opted to return voting control to Spara, since it did not own the company in spite of the unpaid loan.

A Fifth Third spokeswoman declined to comment on Lexington Logistics or on the bank's court filing. Boston Finance "was very pleased with the customer base, the employee base and the vendor base" at Lexington Logistics, Fernando said, and officials believed that the firm "was headed in the right direction."

Golden added that Boston Finance had invested $750,000 of its own funds into Lexington Logistics since November to help the firm meet payroll and make vendor payments. He added that his firm was not confident it would ever get that money back, or be repaid on the initial $6.7 million loan it made to Spara.

Back in November, Jonathan Golden told Plastics News that Spara had not paid on the loan and that his firm elected to exercise its lender remedies by exercising its voting rights that were spelled out in the loan agreement. A Spara spokeswoman confirmed on April 24 that Spara had not repaid the loan from Boston Finance.

Lexington Logistics ranked as North America's 29th largest thermoformer in a recent Plastics News ranking. The firm's annual sales were estimated at $55 million.

Lexington Logistics occupies a 273,000-square-foot plant in Portage and specializes in the design and manufacture of heavy-gauge, single-sheet and twin-sheet plastic thermoformed products.

Zamec was 2007 Thermoformer of the Year, an honor bestowed annually by the Society of Plastics Engineers' Thermoforming Division.


Comments

Zamec back as president of former TriEnda thermoforming plant

By Frank Esposito
Senior Staff Reporter

Published: April 25, 2013 3:45 pm ET
Updated: April 25, 2013 4:09 pm ET

Post Your Comments


Back to story


More stories

Image

Newell Rubbermaid to acquire Contigo brand

July 21, 2014 5:00 pm ET

Consumer products company Newell Rubbermaid Inc. has signed an agreement to acquire Ignite Holdings LLC, owner of the Contigo and Avex brands of...    More

Image

Huhtamäki to evaluate its films business

July 21, 2014 9:52 am ET

Finland-based plastics packaging group, Huhtamäki Oyj, has announced that it is evaluating its options regarding its films business, due to its...    More

Image

Thermoforming Technology Group adds Lyle Industries to its portfolio

July 18, 2014 2:48 pm ET

Thermoforming Technology Group LLC has expanded its thermoforming equipment presence with the acquisition of Lyle Industries Inc.    More

Image

Polynt, CCP create composite resins giant

July 18, 2014 10:13 am ET

France's Total SA has agreed to sell CCP Composites to Polynt Group SpA, based in Italy, for an undisclosed price.    More

Image

Continental Structural Plastics buying 5 Magna SMC plants

July 17, 2014 4:35 pm ET

Automotive and construction supplier Continental Structural Plastics has signed an agreement to buy five sheet molding compound facilities from the ex...    More

Market Reports

Injection Molders Market Report & Ranking 2014

This special package contains our 132-page 2014 Market Report on the Injection Molding segment and our exclusive 2014 RANKINGS database of 500+ Injection Molders for a discounted package price.

Learn more

Plastics Recycling Market Review & Outlook 2014

This special report from Plastics News examines the North American plastics recycling industry and provides insight into indicators that impact market viability, including Resin pricing trends for virgin and recycled market material and historical Resin production trends for post- consumer and industrial waste.

Learn more

Shale Gas Market - Analysis of North American Region

This report highlights the impact of shale-based natural gas on the North American plastics market and features an in-depth analysis of production trends in the United States during 2013 and a forecast for 2014 and beyond.

Learn more

Upcoming Plastics News Events

September 10, 2014 - September 12, 2014Plastics Caps & Closures 2014

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

More Events