Synthetic rope producer Bridgeline Ltd. has risen from the ashes of its bankrupt predecessor.
Bridgeline Ropes Inc. of Deseronto went bankrupt July 11. Bridgeline Ltd. was formed the same day to buy the assets of the defunct company and to carry on business in Deseronto.
Although imports have dogged North America's rope producers, resin prices have been a bigger problem, according to Bridgeline Ltd. President Keith Bridges.
``Resin costs have gone through the roof,'' Bridges said in a telephone interview. Bridgeline Ropes was required by contract to pay high prices for synthetic rope made by sister firm Polytwine of Belleville, Ontario. But Bridgeline Ropes had big difficulties passing on increases to its customers.
Polytwine also is in bankruptcy, and Bridgeline Ltd. is no longer mandated to pay high prices for rope that it outsources.
A. Farber & Partners Inc. of Toronto was to have held a first meeting of creditors for Bridgeline Ropes on July 31. The company earlier tried to make a proposal for reorganization while it was protected from creditors. Farber also tried to sell the company to outside investors but was unsuccessful.