PMC Group Inc., a Pennsylvania-based firm that owns a film extruder and an injection molding company, wanted to buy the bankrupt Summit Plastic Solutions Inc., but a last-minute disagreement over contract language has nixed the deal—at least for now—according to PMC's owner.
``We were interested and we negotiated to be the first bidder, but I think we have come to some type of language barrier,'' Paritosh Chakrabarti, PMC chief executive officer, said in a Sept. 4 telephone interview. ``We would not compromise on that contract language.'' He declined to detail the language dispute.
``We came within a millimeter of getting a deal done,'' said Chakrabarti. He said PMC of Lansdale, Pa., ``absolutely'' would have kept open Summit's Pro Corp. factory in Florence, Mass. ``My primary consideration is to protect jobs,'' he said. ``We may or may not decide to go to the next step'' and bid again, he added.
Bill Brandt, Summit's interim chief executive officer, did not return telephone calls for this story. Calls to Steve Victor, interim chief financial officer, and James Moore, interim chief operating officer, also were not returned.
PMC has four business units: Lenco Inc.-PMC, an injection molding company and audio cassette manufacturer in Waverly, Neb.; PMC Film Canada Inc. of Tottenham, Ontario, a plastic film producer; Polymer Products Co. Inc. of Stockertown, Pa., which makes flame-retardant and anti-static plastic compounds; and Crystal Inc.-PMC in Lansdale, a maker of chemicals for the rubber, food, cosmetics and metalworking industries.
PMC bought Lenco in February, and acquired the Canadian film manufacturer in early 1996.
Brandt has said there are several possible buyers for Summit, and he expects more to make bids once an initial offer is filed with U.S. Bankruptcy Court in Worcester, Mass. Once notice of an offer is filed, the court gives more time for additional bids.
In July, majority owner Mesirow Private Equity Investments Inc. of Chicago gave an interim management team 60 days to sell Summit or shut it down.