The receiver of Adelaide-based specialized plastics firm Masrac Plastics Pty. Ltd. said there has been encouraging interest from potential buyers.
The company is continuing to trade, despite being deeply in debt. National insolvency firm McGrathNicol Services Pty. Ltd., headquartered in Sydney, was appointed receiver in December and sought expressions of interest from potential new owners by the end of January.
Masrac employs 85 people at its Adelaide plant. Its injection and thermoforming facilities produce polystyrene trays for the food industry, suitable for take-away foods, fresh meat, fruit and vegetables, or bakery items. It also produces polypropylene and PS containers and trays for the horticultural sector.
Sam Davies, Adelaide-based partner of McGrathNicol, said Masrac was established in 1985 and acquired by businessman Lew Rayner seven years ago.
McGrathNicol was appointed receiver Dec. 19, after Masrac defaulted on loans, Davies said. The insolvency firm continues to operate Masrac's Adelaide plant, which last year had sales of US$10.6 million, but suffered from underused capacity.
It has debts of at least A$10 million (US$6.6 million) that are still being quantified, he said. But we have continued to trade on a slightly cash-positive basis, which in turn has supported a decision to try to [sell the company] as a going concern.
Davies would not disclose the identities or specific number of responses to the call for buyers, but said: The interest levels from potential [South Australian] and national buyers is encouraging. He noted a lack of offshore interest in the sale that is not surprising, given the state of the global economy.
We have built a short list, and several parties will undertake due diligence. That process has now started and we are targeting the receipt of final offers by Feb. 23, Davies said.