Venture won't seek buyer for Peguform
FRASER, MICH. - Venture Holdings Co. is not seeking a buyer for its Peguform GmbH subsidiary, but also is not making any long-term commitments for the German operation even if court officials there decide the business is solvent.
Four members of Peguform's management filed a request in May seeking insolvency for the German plants. The court will decide the plants' fate by the end of this month. In the meantime, parent company Venture of Fraser has been working to placate creditors and customers and work out a global restructuring plan.
In a telephone conference with creditors July 24, Executive Vice President James Butler said Venture had not ``pursued any sale'' of Peguform prior to the filing and cannot do anything while the court is overseeing the business. Besides, any price obtained now would be low.
``After the assets are returned to the company and the business in Europe is stabilized, a whole host of options will be open to the company,'' Butler added.
The automotive supplier's restructuring plan depends on Peguform's return to Venture. The BÃ¶tzingen, Germany-based molder of interior and exterior systems is responsible for more than 70 percent of Venture's sales.
Venture owner Larry Winget separately owns financial and real estate companies that own property and equipment leased to Venture and Peguform. Part of the new plan would turn those businesses over to Venture.
The restructuring process has not been smooth. Last month one of Venture's creditors, Orix Capital Markets LLC, filed a lawsuit in Dallas claiming the firm acted improperly in obtaining a $6.4 million loan from Orix in March. That suit is hampering access to Venture's funds.
The company noted it will fight the case, calling the suit ``overbroad'' and ``without adequate basis.''
Glastic Corp. merging pultrusion operations
CLEVELAND - Glastic Corp. is consolidating operations from its acquisition of Hope Valley Inc. in North Kingstown, R.I.
The Cleveland-based processor of composite materials and components will move three pultrusion lines into its 100,000-square-foot headquarters facility by mid-August, said Mark DiGiampietro, vice president of sales.
The plant currently has 13 lines making laminates, pultrusions and bulk molding compounds.
Hope Valley manufactured products using specialized technology for the fiber-optic industry in a 15,000-square-foot plant. Glastic bought the operation in April. DiGiampietro would not provide details, but said the technology is a process that both Glastic and Hope Valley use.
``We bought Hope Valley for the base of fiber-optic customers and the additional capacity that would be required,'' DiGiampietro said.
Now Glastic plans to move into wood reinforcement products for the transportation and housing industries, DiGiampietro said in a July 29 telephone interview. Glastic expects the new markets to boost sales 5-8 percent this year. Glastic is owned by Crawford/Greene LLC, an affiliate of investment firm Crawford Group LLC, based in Grosse Pointe, Mich. According to the Crawford Group Web site, Glastic has $55 million in annual sales. Glastic operates facilities in Jefferson, Ohio; Salem, Mich.; and a stocking location in Birmingham, England. The firm employs 375 in its North American facilities.