ITML Horticultural Products Inc. has offered to buy certain assets of TLC Polyform Inc. in a bank auction scheduled for Feb. 3. Both firms make plastic agricultural containers.
ITML of Brantford, Ontario, bid US$3.1 million for equipment and about $400,000 for inventory. Turnaround consultant Morris-Anderson & Associates Ltd. of Des Plaines, Ill., is accepting additional bids through Jan. 30 on behalf of secured creditor Wells Fargo Bank in Minneapolis.
ITML has agreed to lease TLC Polyform's Beaverton facility for up to three months to facilitate removal of the assets including 19 thermoforming lines and seven extruders. TLC also had operations in Plymouth, Minn.; Morrow, Ga.; and Phoenix.
In November, an unidentified bidder had offered to buy the business for $4.8 million plus inventory of $750,000, but the bank's proposed private transaction was not consummated.
Unsecured creditors filed Dec. 13 seeking to push TLC Polyform into involuntary bankruptcy, and the firm halted manufacturing operations Dec. 17.
The U.S. Bankruptcy Court in Bay City, Mich., approved conversion of the case to Chapter 7 liquidation from Chapter 11 reorganization Jan. 14. Bankruptcy trustee Karen Evangelista of Troy, Mich., is overseeing the sale. The auction will occur in the Detroit law offices of Jaffe Rait Heuer & Weiss PC.
In addition to its Brantford site, ITML has operations in Brampton and Burlington, Ontario; Lugoff, S.C.; and Waco, Texas. The firm does injection molding and thermoforming, making more than 500 different agricultural products under the ITML and Kord brands.