Custom molder On-Line Plastics Inc.'s assets will be sold at a Sept. 7 auction scheduled by IPC Levy of Northbrook, Ill. Equipment for sale includes 20 Toshiba presses with clamping forces of 85-720 tons, two small Engel presses and a 400-ton Cincinnati Milacron reciprocating screw model.
On-Line focused on molding speaker parts for automotive radios, according to John Lawffer, the firm's financial manager. It also molded for toy maker Fisher-Price Inc. of East Aurora, N.Y.
On-Line's production assets will be sold on a piecemeal basis at the firm's Bloomington, Ind., site. IPC Levy will hold an inspection of the assets Sept. 5-6.
On-Line filed Feb. 24 for reorganization under Chapter 11 of the U.S. Bankruptcy Code, said Lawffer. It tried to reorganize, but two major customers pulled their business. Owners then tried to sell the company as a going concern to investors, but were unsuccessful. When On-Line lost its last major customer in early July, the court ordered a liquidation of the company.
Lawffer said On-Line's troubles began when the Internal Revenue Service filed a tax lien against the company. The lien violated bank loan covenants, causing On-Line's major bank, Sanwa Business Credit of Chicago, to shut off its credit line.
On-Line's equipment includes metal machining equipment, a Novatec central vacuum feed system and silos, dryers, granulators and other auxiliary items.
Lawffer said On-Line's manufacturing plant and its ware-house, each with more than 22,000 square feet of space in Bloomington, will be sold by Snyder Auction & Appraisal of Bloomington after the equipment auction.