Sheriff's sale slated for Sipco building

MEADVILLE, PA. (Oct. 23, 2:50 p.m. ET) -- The former Sipco Molding Technologies building, which once housed one of Meadville’s prominent tool and die mold companies, will be sold at a sheriff’s sale Nov. 6.

Brothers Larry and Lon Sippy sold Sipco to Eric Hoover in 2006. The following year, Hoover bought Multi-Tool Inc., a maker of injection molds, and custom molder Multi-Plastics Inc., both in nearby Saegertown, Pa. He also bought Multi-Plastics of New Mexico Inc. in Las Cruces, N.M.

Hoover was owner of Excalibur Machine Co. Inc. in Conneaut Lake, Pa., which does machining and heavy-steel fabrication of large parts for locomotives, rail cars and construction. He set up an umbrella company called Core Manufacturing as the parent company of Excalibur, Sipco and Multi-Tool and Multi-Plastics.

The Crawford County Sheriff’s Department confirmed the sale date for Sipco, but had no other details.

Citing court records, the Meadville Tribune newspaper reported that the Sipco property will be sold for default on a $586,000 loan from Mercer County State Bank. The newspaper said Sipco took out the loan, but it was transferred to Core Manufacturing after it bought Sipco.

Hoover did not return telephone calls for this story. Multi-Tool and Multi-Plastics are no longer in operation, said a receptionist at Excalibur Machine.

In January, the business units of Core Manufacturing filed for Chapter 11 bankruptcy. In a motion filed Oct. 14, Core asked the bankruptcy judge to approve the sale of several units to Esmark Inc. The sale agreement covers Excalibur Machine; Blade Transport Inc., a trucking company in Hartstown, Pa., providing transportation services for Core companies; and Camelot Consolidated Inc., a Conneaut Lake sales organization for the Core units.

Esmark has agreed to buy the three businesses for $3.5 million, according to the filing. The bankruptcy court will accept other bids.

Multi-Tool, Multi-Plastics and Multi-Plastics of New Mexico are not part of that proposed sale. According to bankruptcy documents, those companies have entered into an agreement with their primary secured lender, S&T Bank, for the operations to “run-out” the bank’s collateral following a court-approved cash collateral.

Core Manufacturing’s lawyer, Guy Fustine of Erie, Pa., could not be reached for comment.

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