June 5, 2013
Plastic pallet supplier iGPS Co. LLC has filed for bankruptcy and agreed to sell its assets to a newly-formed joint venture company.
The Orlando, Fla.-based iGPS Co. will be sold to iGPS Logistics LLC, a joint venture formed by private equity firms Balmoral Funds LLC and One Equity Partners, a shareholder of pallet manufacturer Schoeller Arca Systems, and Jeff and Robert Liebesman, according to a June 5 Chapter 11 filing in U.S. Bankruptcy Court in Wilmington, Del.
The sale is subject to higher and better bids and court approval. It should be completed within 30-45 days, according to court filings.
One Equity owns a controlling stake in SAS, and earlier this year merged the company with Linpac Allibert and rebranded it as Schoeller Alibert.
SAS is one of iGPS’ largest creditors, with a claim of more than $5.4 million, according to court filings.
IGPS plans to continue operating without interruption and said customers will not be affected. The company “will continue to continue to honor and service its existing clients and new client programs,” the company said in a news release.
Crystal Financial LLC will provide the company with up to $12 million in debtor-in-possession financing and exit financing, according to court filings.
IGPS rents recyclable, lightweight reinforced-plastic pallets equipped with RFID technology. It says its pallets are the only multi-use pallets to be food equipment certified by NSF International.
The company has between $100 million and $500 million in assets, according to court filings.