Auction set for equipment from profile extruder Profilex

By Michael Lauzon
Correspondent

Published: April 3, 2014 1:54 pm ET
Updated: April 3, 2014 1:57 pm ET

Related to this story

Topics Pipe/Profile/Tubing, Windows & doors

Profile extrusion equipment from a failed business in Newmarket, Ontario, will be auctioned off on April 16.

Equipment from Profilex Inc. will be sold in a live webcast auction held by Asset Services of Toronto. Profilex was petitioned into receivership following an application by its major lender, Bank of Montreal, in October. Grant Thornton Ltd. of Toronto became Profilex’s receiver on Feb. 3.

Profilex owes Bank of Montreal about C$2.75 million (US$2.5 million). A spokesman for Grant Thornton said he could provide no other figures for amounts owed to other secured and unsecured creditors or an estimated asset value because Profilex officials would not cooperate with the receiver.

According to court documents, Profilex defaulted on loans and security agreements and repeatedly overdrew its account with Bank of Montreal. Court documents contain copies of emails the bank sent to Profilex President Ernesto Alvarez-Felipe and other company officials drawing attention to defaults and complaining that Profilex officials appeared evasive when the bank requested meetings.

Profilex operated out of a 100,000-square-foot leased facility in Newmarket and listed patio door and window production as its main business. The landlord, Granite Real Estate Investment Trust, locked out the company in October because Profilex was arrears in its rent. The lockout jeopardized Bank of Montreal’s security in Profilex’s equipment and so it petitioned for receivership. Profilex appealed the appointment of a receiver but later dropped the appeal.

Court documents allege Profilex was operating at 10 percent capacity at one point last year and its forecast to the bank of big sales to major retailers did not pan out.

Profilex investors bought a previously failed business at the Newmarket site in early 2012. Premium Products Inc. went into receivership in 2011 and BDO Canada Ltd. of Toronto was appointed receiver in late September of that year. Premium was petitioned into bankruptcy by major creditors.

Profilex equipment for sale includes 15 extruders, four coextruders, sizing tables, pullers, cut-off saws and water tanks, chillers and granulators, tool-making equipment and about 160,000 pounds of virgin and regrind PVC.


Comments

Auction set for equipment from profile extruder Profilex

By Michael Lauzon
Correspondent

Published: April 3, 2014 1:54 pm ET
Updated: April 3, 2014 1:57 pm ET

Post Your Comments


Back to story


More stories

Image

Housing forecast predicts strong growth, demand for decks, doors, windows

January 20, 2015 4:59 pm ET

Demand for new single-family homes is projected to increase by as much as 26 percent in 2015, and if it does, building material makers will be...    More

Image

Public utilities appeal latest decision in JM Eagle case

January 20, 2015 1:08 pm ET

The law firm representing public utilities in a False Claims Act lawsuit against J-M Manufacturing Co. — now called JM Eagle — plans to...    More

Market Reports

Plastics in Automotive: Innovation & Emerging Trends

This special report newly released by PN and sponsored by The Conair Group examines current trends in the use of plastics in automotive, materials innovations and the changing landscape. It includes a review of legislative/regulatory activity impacting vehicle development and lightweighting, market opportunities & challenges for mold and toolmakers, innovative design strategies being implemented by major OEMs and suppliers, as well as a review of key indicators in Canada, Mexico, Brazil and China.

Learn more

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Injection Molding Market Analysis & Processor Rankings

Plastics News BUNDLED package contains our in-depth Market Analysis of the Injection Molding segment. You will gain keen insight on current trends and our economic outlook.

As a BONUS this includes PN's updated 2014 database of North American Injection Molders RANKED by sales volume. Sort, merge, mail & prospect by end market, materials processed, region, # of plants and more.

Learn more

Upcoming Plastics News Events

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

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

More Events