Industrial blow molder Mac Plastics Inc. of Washington, Pa., voluntarily filed Feb. 6 for protection under Chapter 7 of the U.S. Bankruptcy Code.
Stanley Levine, a Pittsburgh-based lawyer for Mac, said its owners and National City Bank would like to sell Mac's plant and equipment as a ``semiturnkey operation,'' and a number of companies have expressed interest. He said it was difficult to put a value on the operation since Mac had loans on its blow molding machinery and it has begun shipping molds back to customers.
Mac owes about $6 million to National City Bank and about $6 million to unsecured creditors, Levine estimated. Separately, National City foreclosed a $2.7 million mortgage on Mac's facility, owned by Tygart Valley Complex, a sister company of Mac.
Bank officials in September enlisted Meridian Group of Pittsburgh to help turn Mac around and to begin marketing the company. Mac ran into cash-flow problems before Meridian could find a buyer. Levine said in a telephone interview that Meridian will continue to help find a purchaser for the operation.
``It's a shame [Mac] ended the way it did,'' said Margaret Good, Meridian's president. She would not elaborate on what Mac's problems were, but said the operation has a good future for a company willing to invest capital in it.
Good said in a telephone interview that Mac had a strong customer base, including housewares major Rubbermaid Inc., and a strong work force, and that its utilities and facility costs were lower than average.
Andy Bury, an official with the United Steelworkers union, said the company sent its workers home Feb. 6. About 318 members of USW Local 9204 worked at the plant. The court approved a plan Feb. 12 for Mac's unionized workers to get two weeks' wages owed to them. The USW scheduled a Feb. 13 meeting to help workers with retraining.
Mac President Rudy DiNardo declined comment on what caused the bankruptcy.
Mac reported 1996 sales of $34 million, making it the 16th-largest industrial blow molder in Plastics News' most recent survey of North American blow molders. The firm said it had 32 blow molding machines at its one plant and processed polyethylene, polypropylene, PET and polycarbonate. Its markets included toys, medical, drums and other industrial packaging, automotive parts and lawn and garden.
Rudy, Jim and Norm DiNardo are Mac's majority owners. They and another investor own Tygart Valley Complex. Rudy DiNardo is a partner in Canon Plastics Inc. in Houston, Pa., which provided injection molding support to Mac. Canon officials declined comment on the impact of Mac's demise.