TORONTO — One of Versatech Group Inc.'s injection molding subsidiaries could be sold this month.
An undisclosed company is negotiating to buy Hi-Craft Engineering Inc. of Fraser, Mich., according to Aldis Makovskis, senior vice president of PricewaterhouseCoopers Inc., which is Versatech's receiver. Hi-Craft molds a variety of small auto parts on presses up to 250 tons, Makovskis said in a telephone interview from PricewaterhouseCoopers' office in Kitchener, Ontario.
Toronto-based Versatech sought protection from creditors in early May. Hi-Craft and injection molder and painter Tarxien Components Corp. of Ajax, Ontario, are its last remaining businesses. Grant Thorton LLP of Toronto is receiver for Tarxien.
Last year Pricewaterhouse- Coopers sold rubber and plastic parts producer Versatech Sealing Systems Inc. of Leamington, Ontario, to Elring Klinger Sealing Systems Inc. of Livonia, Mich. Versatech also held 49 percent of Commonwealth Regal Industries Inc., an injection molder in Windsor, Ontario, but the stake was sold to its partner in the venture, Regal Plastics Co. of Roseville, Mich.
Versatech's Apex Metals Inc. subsidiary also was sold last year. Last March, Versatech sold its PaintPlas Inc. subsidiary before seeking bankruptcy protection.
Versatech owed its principal banker, Canadian Imperial Bank of Commerce, about C$80 million when it sought bankruptcy protection. Versatech was unable to come up with a reorganization plan that satisfied creditors, and its bank asked the court to put the auto-parts firm into receivership. Ontario Superior Court of Justice in Toronto put Versatech into receivership Oct. 31.
Versatech had injection molding sales of US$105.5 million in 1999. Officials for the firm and Hi-Craft were unavailable for comment.