The new owners of Amko Plastics Inc. plan to continue with the firm's strengths in promotional bags and similar products.
Fisher Investment Group of Cincinnati was scheduled to take over Amko on Jan. 31 following the Jan. 21 approval of Amko's reorganization by U.S. Bankruptcy Court in Cincinnati. Fisher Investment will pay about $3 million for the Cincinnati film extruder and bag maker.
Fisher Investment Chairman Mel Fisher, who will become Amko's chairman, said Amko ``will do more of what it did and do it better.''
A key business will be specialty bags such as those used by firms at trade shows. Amko probably will extend its promotional focus to a new line of plastic security bags designed to replace heavy canvas bags used by banks, Fisher said in a telephone interview. Security bags will sport bank logos as they travel around the country.
Fisher said he doubts Amko will need any major capital program in the near term because it has spare capacity.
Plastics News estimated Amko's sales at $33.6 million for the year ended June 30. It employs about 200.
Amko will pay unsecured creditors about 40 cents on the dollar from a trust fund that will become effective Feb. 3, according to Scott Avila, account representative for turnaround specialist Budetti & Associates of Los Angeles.
Unsecured creditors are owed about $4.2 million. Secured creditors Star Bank and Bank One will get the full $17.5 million owed to them. Creditors overwhelmingly approved the reorganization plan in mid-January, according to Avila.
Fisher Investment's other businesses include Texo Corp., a specialty industrial chemical company, and a telephone sales company. Fisher said the firm has no other plastics interests but it has ``plenty of management experience,'' which he said Amko needs. Amko filed for bankrupty in late 1995.
John Baumann, a former Texo executive, will become Amko's president, Fisher said.
George Makrauer, former president and chief executive officer of Amko, will continue with Amko in an advisory role, according to Avila.