Bankrupt TLC Polyform Inc., a thermoformer of agricultural containers, ceased manufacturing Dec. 17 and its on-site administrative staff is trying to collect $840,000 in receivables.
The firm is moving toward bankruptcy liquidation, said Thomas Budzynski, a creditors' lawyer with an office near Mount Clemens, Mich. A Dec. 13 filing of unsecured creditors pushed the Beaverton, Mich., company into involuntary bankruptcy.
The U.S. Bankruptcy Court in Bay City, Mich., is to appoint a trustee and consider converting the case to Chapter 7 liquidation from Chapter 11 reorganization.
TLC consolidated its Plymouth, Minn.; Morrow, Ga.; and Phoenix operations into the Beaverton facility, its largest and newest. In a court filing, the firm said its inventory shrank from $4 million Sept. 21 to $850,000 on Dec. 13.
TLC Polyform employed 80.
In late summer, the Minneapolis office of Wells Fargo Bank retained turnaround consultant Morris Anderson & Associates of Des Plaines, Ill., to operate the business. Morris Anderson set a deadline of Nov. 20 for sealed bids on TLC Polyform. ``The bank was trying to do a private sale,'' Budzynski said.
Court papers say an unidentified bidder proposed to buy the business for $4.8 million plus inventory of $750,000. The involuntary filing precluded conclusion of a deal.
In November, Morris Anderson proposed a workout plan to vendors but had funding difficulties even in paying for collect-on-delivery material shipments.
TLC Polyform owes more than $1.2 million to secured creditor Group Deltec-Vespromar Inc. for the 2000 acquisitions of Cyberplast Industries Ltd. and TFI Plastics Inc. Before the acquisitions, TLC Polyform had an excellent record on payables, a supplier said.