Versatech Group announces bankruptcy
TORONTO — Auto parts maker Versatech Group Inc. has gone bankrupt because sales of its divisions didn't raise enough cash to satisfy creditors.
PricewaterhouseCoopers Inc., trustee in the bankruptcy, will hold the first meeting of creditors May 29 in Mississauga, Ontario.
Versatech recently sold its Hi-Craft Engineering Inc. subsidiary in Fraser, Mich., to an undisclosed group of private investors, according to Aldis Makovskis, senior vice president of PricewaterhouseCoopers. Hi-Craft injection molds a variety of small auto parts on presses with clamping forces up to 250 tons.
Versatech of Toronto sought protection from creditors in early May 2000. Injection molder and painter Tarxien Components Corp. of Ajax, Ontario, is its last remaining business. Grant Thorton LLP of Toronto is receiver for Tarxien, which continues to operate.
Last year PricewaterhouseCooper sold rubber and plastic parts producer Versatech Sealing Systems Inc. of Leamington, Ontario. Versatech sold its 49 percent interest in Commonwealth Regal Industries Inc., an injection molder in Windsor, Ontario. Versatech's Apex Metals Inc. and PaintPlas Inc. subsidiaries also were sold last year.
Versatech owed its principal banker, Canadian Imperial Bank of Commerce, about C$80 million (US$52 million) when it sought bankruptcy protection. The Ontario Superior Court of Justice in Toronto put Versatech into receivership Oct. 31.
Versatech had injection molding sales of $105.5 million in 1999.
American Plastics Council seeks new prez
ARLINGTON, VA. — The American Plastics Council hopes to have a new president by June to replace Ron Yocum, but the head of the search said the specific timing remains up in the air.
Yocum announced in January that he would be stepping down as head of Arlington-based APC, but he agreed to stay on until a replacement is found. Yocum would like to leave in June but has indicated he is flexible, said Jeff Lipton, president and chief executive officer of Nova Chemicals Corp. and the immediate past chairman of APC.
"We would like to match his timetable," Lipton said.
Lipton said he is leading the search, which will be conducted by APC's executive committee without assistance from an executive search firm. The group has had some candidates express interest but has not interviewed any yet, Lipton said.
APC would like to find a candidate from the plastics industry, similar to Yocum before he took over the trade group in 1998.
"We think understanding the industry is a high priority and we collectively know pretty much everybody," Lipton said.
The executive committee will talk with Yocum at APC's board meeting June 6 to decide its next step, Lipton said.
"We have not gotten tremendously energized," he added.