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

A third generation is adding to the growth at American Vinyl Co.

July 28, 2014 4:32 pm ET

American Vinyl Co., a compounding and extrusion company that increased its workforce 20 percent this year, is looking to double its space for storing ...    More

Image

Who are the fastest growing pipe, profile and tubing extruders?

July 28, 2014 3:09 pm ET

Question: What's the word on this week's Plastics News annual ranking of the top Pipe, Profile and Tubing extruders in North America? Answer: Up....    More

Image

Australian trade group battles non-compliant PVC pipe fittings

July 28, 2014 2:19 pm ET

An Australian plastics industry association is battling against imported, non-conforming PVC pipe fittings, but is stymied by a convoluted web of...    More

Image

ADS launches public trading on NYSE

July 25, 2014 10:41 am ET

Advanced Drainage Systems, the world's largest producer of thermoplastic corrugated pipe, made its debut on the New York Stock Exchange today with 14....    More

Image

New startup uses film for a 'virtual venetian blind' in smart windows

July 21, 2014 12:50 pm ET

Flexible ITO Solutions, which goes by FITOS, has an informal development agreement with a smart window manufacturer that could use the technology to m...    More

Market Reports

Plastics Recyclers Data Report & Directory

This exclusive MS Excel database contains all the companies from Plastics News' ranking of top North American Recyclers and Brokers by reprocessed volume and also includes a directory with materials processes, services offered and company contact information. Data is based on primary research by PN editorial staff.

Learn more

2014 Injection Molding Industry Report

GROWTH, OPPORTUNITY IN SIGHT FOR INJECTION MOLDERS IN 2014

In the wake of the economic turbulence earlier in this decade, molders today find themselves in much better shape. Molders are gaining a competitive advantage by investing in people, equipment and seeking inroads into new markets on a global scale.

Growth in the injection molding industry is going to be driven by low financing costs and a continued move to reshore some business.

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

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

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

More Events