The former majority owner of housewares maker Euro United Corp. is trying to restart another firm located in a Euro United facility. Sam Rehani hopes to resume operations at Blow Moulding, a firm based in Euro United's Buffalo, N.Y., operation. Blow Moulding has nine large Davis-Standard blow molding machines in the Buffalo plant that are worth about $9 million, according to Alan Bozer, Rehani's Buffalo lawyer.
Blow Moulding had been making one-piece garden sheds and large garbage cans at the Buffalo facility until mid-February, when Euro United's interim receiver, KPMG Inc. of Toronto, closed the plant as it began seeking a buyer for all of Euro United. Blow Moulding had been sharing Euro United staff and occupied space in the Buffalo facility. The company is wholly owned by Rehani.
State Supreme Court Justice Patrick NeMoyer ruled May 4 that Rehani could have access to the Buffalo facility, but said it is Rehani's responsibility to negotiate a sublease with the building's owner, Niagara Frontier Transportation Authority.
Bozer said in a telephone interview that his client is in contact with NFTA to try to obtain occupancy for Blow Moulding. Rehani also is negotiating with Davis-Standard Corp. of Pawcatuck, Conn., to restart the blow molding machines. Davis-Standard temporarily disabled the machines. Davis-Standard officials could not be reached to confirm a Buffalo News report that Blow Moulding owes the company $4 million.
KPMG wants to sell Euro United as a going concern and has opposed Blow Moulding operating in one of the key Euro United facilities it is trying to sell.
Bozer said Rehani wants to restart Blow Moulding in a month or two and said the operation would employ about 100.