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 Windows & doors, Pipe/Profile/Tubing

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

Judge limits scope of jury verdict against JM Eagle

December 19, 2014 2:30 pm ET

A federal judge in Los Angeles said Dec. 18 that last year's jury verdict issued against J-M Manufacturing Co. — now JM Eagle — for...    More

Image

Soy-based foam improves window performance, sustainability

December 18, 2014 12:51 pm ET

Launched in April 2013, Madison, Wis.-based WFI Global LLC is making a name in the fenestration market with what it says is a distinct product...    More

Market Reports

Flexible Packaging Trends in North America

Our latest RESEARCH report examines trends in FLEXIBLE PACKAGING impacting the North American market including a review of economic conditions, key drivers of growth, materials pricing, M&A activity, sustainability challenges and the outlook for 2015.

Learn more

Plastics in Brazil - State of the Industry Report

This in-depth report examines the Brazilian plastics industry from a historical and geographical context. Our analysts provide insight on economic trends and forecasts, growing manufacturing sectors that utilize plastics, private investment opportunities, market environment challenges, and innovations in R&D.

Data tables and charts on producer prices, trade, plastics production and end market indicators is also included.

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

Upcoming Plastics News Events

January 14, 2015 - January 14, 2015Plastics in Automotive

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

October 27, 2015 - October 29, 2015Plastics Financial Summit - New York - 2015

More Events