CINCINNATI - Amko Plastics Inc. is looking for investors. The Cincinnati plastic film and bag maker, now reorganizing under Chapter 11 of the U.S. Bankruptcy Code, hired consultant Frank Budetti of Los Angeles to help it get turned around, said George Makrauer, Amko president and chief executive.
Budetti believes a cash infusion from new investors, ``coupled with a stretched-out debt repayment plan'' will allow it to repay debts totaling $21.4 million, including $17.7 million to secured creditor Star Bank of Cincinnati, according to a Nov. 10 story in the Cincinnati Enquirer.
Some of Amko's troubles stem from its eroding retail bag-making business. This year its projections for that segment were $8 million off the mark, Makrauer said by telephone Nov. 20, resulting in 90 layoffs since September, with more cuts forthcoming. Amko's current work force is about 270.
But, Makrauer emphasized, his firm is focused on moving forward. He would not say how much cash it hopes to raise, or whether a merger with another plastics firm is a possibility.
``The financial arrangments have not yet been determined,'' he said.
For now Amko is owned by two families, Makrauer said, his own and another he would not name.
While Amko's longtime bag business has suffered, its newer high-performance films have done well. But a $12 million investment during the past two years, equally divided between the firm's traditional and new products, along with the sluggish retail bag market, has burdened it with debt, Makrauer said. Amko had sales of $32 million for its fiscal year ended June 30.
Hi-Tech adds cast stretch film capacity
KAUKAUNA, WIS. - Hi-Tech Film Inc. will add a third cast stretch film extrusion line by the second quarter of 1996.
Rik Klein, treasurer of the Kaukauna-based extruder, said the firm's plant was expanded to 25,000 square feet in 1994 to accommodate the new production line, and that installation should be complete by late February. The firm extrudes cast stretch polyethylene films, primarily for packaging.
The firm had $6 million in sales for 1994, and resin through-put of about 10 million pounds. Klein estimated the third line will boost capacity to about 30 million pounds per year.
O-I to build compounding operation
FRANKLIN, IND. - Owens-Illinois Inc. of Toledo, Ohio, will spend $100 million during the next five years to build and operate a plastics manufacturing and compounding facility in Franklin.
Indiana Lt. Gov. Frank O'Bannon said Nov. 8 the state Commerce Department will give Owens-Illinois a $60,000 grant to train 155 workers, and Franklin will use $150,000 from the state Industrial Development Grant Fund for infrastructure improvements, and a low-interest $250,000 Industrial Incentive Program loan for equipment.
John Hoff, an Owens-Illinois spokesman, declined to give details on plant size, or on materials to be processed.
The firm is a major producer of plastic and glass bottles and caps, with 1994 sales of $3.56 billion. Its Owens-Brockway Plastic Products division was third on Plastics News' 1995 ranking of North American blow molders, with estimated sales of $500 million. The company was sixth in PN's injection molders ranking, with estimated annual sales of $300 million.
DuPont Co. joins PB pipe settlement
EUTAW, ALA. - DuPont Co. has joined Shell Oil Co. and Hoechst Celanese Corp. in the $950 million class-action settlement over leaking polybutylene plumbing systems.
Separately, two state court judges, in Alabama and Tennessee, have approved the settlement. Shell and Hoechst announced the settlement - without DuPont's involvement - on Nov. 8. DuPont signed on about a week later.
DuPont and Hoechst made acetal for injection molded pipe fittings that were part of the systems. Shell supplied PB resin.
DuPont's participation will cover 10 percent of the costs from acetal fittings damages. The settlement supersedes another one DuPont reached earlier this year. The massive legal deal brought together two warring national class-action lawsuits.
The agreement was brokered by Judge Richard Silver of Superior Court in Monterey, Calif., who was overseeing another suit in that state. Silver approved the settlement Nov. 8. The next day it was approved by Judge Michael Maloan of Tennessee State Chancery Court in Union City. Judge Eddie Hardaway of Alabama Circuit Court approved it Nov. 17 in Eutaw.