Dismantling of Casco Molded Plastics Inc. will continue July 20 with disposal of the firm's El Paso, Texas, facility.
The bankruptcy court in Wichita, Kan., will auction the ongoing Texas business, building and equipment, including 29 injection molding presses with clamping forces of 77-960 tons.
``We will sell all but cash equivalents and receivables,'' said Edward Nazar of Wichita law firm Reynolds & Nazar, which represents Casco.
Casco filed in November for protection from creditors under Chapter 11 of the U.S. Bankruptcy Code. The company had employed about 480 and reported 1997 sales of $45.5 million.
Financial losses, and difficulties extending a loan agreement, forced the Wichita-based business into bankruptcy. A subsidiary, Casco Plastics Inc., filed for protection in September.
``The court did not appoint a trustee and allowed me to run the operation during the bankruptcy proceedings,'' Lee Hughes, general manager of Casco Molded Plastics, said in a telephone interview. ``The El Paso operation is profitable.''
Two major asset sales have occurred through court auctions, Nazar said.
Palo Alto Products International (Pte.) Ltd. of Palo Alto, Calif., purchased the New Braunfels, Texas, plant and equipment including 30 machines of 77-1,000 tons for $2.8 million at an April 15 auction, Nazar said. The transaction was completed in late April. Nearby, Palo Alto began injection molding operations in January at a newly constructed 51,000-square-foot New Braunfels facility.
The court awarded Casco's Wichita assets to two buyers May 25.
Private investor Shannon II LLC of Wichita paid $1.4 million for the land and building, where it plans to establish a Metal-Fab Inc. metal pipe-making operation. The Shannon family owns Metal-Fab.
Auction house Hackman Capital Partners LLC of Los Angeles paid $1 million for the Wichita equipment, including 48 presses of 28-1,400 tons, 46 granulators, 54 chillers, silos, support equipment, machine-shop gear and 10 forklifts, said auctioneer Roy Gamityan. Hackman will auction off the equipment July 27 at the plant.
Nazar said Nation's Bank, the principal secured creditor, has been paid in full from operating capital and asset sales. Unsecured creditors Cigna Corp. and various vendors will be reimbursed next.