A Connecticut equity firm is bidding to buy bag producer Uniflex Inc.
Hicksville, N.Y.-based Uniflex has operated under Chapter 11 bankruptcy protection since June 24, after accumulating more than $13 million in secured debt. The case is in U.S. Bankruptcy Court in Wilmington, Del. Assets are to be auctioned to the highest bidder Dec. 15, said Uniflex Chief Financial Officer Richard Richer.
Private equity firm Brynwood Partners of Greenwich, Conn., has been the only company to express interest, Richer said. The firm holds all of Uniflex's senior secured debt, he said. The bag maker has continued operating during the reorganization, Richer added.
``We're close to the end of the process, and we think it will have a very bright end,'' Richer said. ``This will establish us with a healthy balance sheet and with a company [Brynwood Partners] that will invest several million into our business.''
However, the company could receive other bids, Richer said. The company started contacting potential buyers Sept. 20, according to a court filing. Of those, five companies provided ``expressions of intent'' for some or all the Uniflex assets, the filing stated.
The court will determine the winning bid Dec. 16, and the new owner will take over soon after that, Richer said.
Uniflex, a maker of polyethylene bags and flexible plastic envelopes, employs 268 at a plant in Westbury, N.Y., and at two distribution facilities. The company expects sales of more than $30 million this year, Richer said. Former President and Chief Executive Officer Hy Brownstein has left the company, and a new CEO will be named soon, Richer said.
Uniflex is owned by New Canaan, Conn.-based equity firm RFE Investment Partners LP and top managers.