HPG International Inc. is reopening its plant and seeking a buyer after recently filing a voluntary petition for Chapter 11 bankruptcy protection in a Delaware court.
The company, which temporarily closed its facility during the week of Jan. 21, plans to use a debtor-in-possession loan from Bank of America to reopen the Mountain Top, Pa., plant by Feb. 2, according to HPG Chairman John Dellevigne.
He said the company worked with the bank and that the court had approved the loan. It will fund operations so that HPG will be able resume 24-hour-per-day, seven-day-a-week operations.
Dellevigne said in a Jan. 27 telephone interview that the company is in the process of buying raw materials and notifying 90 production workers that they can come back to work. HPG has about 125 employees down from more than 200 last year.
``Just as before the shutdown, we have a lot of business to work on,'' he said.
Dellevigne said that in late 2008, the company got caught in a squeeze with rapidly rising resin costs and the inability to raise prices. HPG makes PVC film and sheet used in roofing, swimming pools and laminating products. The firm, along with parent VIG Holdings Ltd., filed Jan. 23 for protection under Chapter 11 of the U.S. Bankruptcy Code in Wilmington, Del.
This is the second time that HPG has gone the Chapter 11 route, filing in December 2001, and emerging from protection in October 2003.
``The current plan is to sell HPG as a going concern,'' said Jeffrey Carbino, a lawyer with Buchanan, Ingersoll & Rooney PC in Wilmington, which is representing HPG.
A number of parties are interested in the firm and Carbino expected written bids during the week of Jan. 26.
Dellevigne said HPG had engaged an investment banker.