Chemtura files Chapter 11 bankruptcy
MIDDLEBURY, CONN. Plastics additives maker Chemtura Corp. on March 18 filed for voluntary protection from its creditors in U.S. Bankruptcy Court in New York.
The company blamed declining orders and reduced liquidity as a result of the global recession.
Despite our efforts to increase liquidity, including through the potential sale of a business, our reduced liquidity position, combined with the anticipated expiration of our bank waiver, led us to determine that a court-supervised restructuring was the best course of action, Craig Rogerson, Chemtura's chairman, president and chief executive officer, said in a news release.
Chemtura's non-U.S. subsidiaries were not included in the filing. The company expects to continue to operate during the restructuring. Chemtura has a commitment for up to $400 million in debtor-in-possession financing from Citibank, N.A.
The company has struggled financially since its creation in 2005 from a merger of Crompton and Great Lakes Chemical Corp.
Chemtura generates about 45 percent of its sales from plastic additives. The Middlebury-based company posted 2008 sales of $3.5 billion.
SRG planning factory in central Europe
WARREN, MICH. Officials in Poland say auto supplier SRG Global Inc. is making plans to establish a new plant in the southwestern town of Boleslawiec.
The Warren-based injection molder, however, would only say that while it is interested in locating manufacturing somewhere in central Europe at some time, any discussion about specific locations is premature.
Polish business newspaper Puls Biznesu reported March 19 that the company will invest 85 million zloty ($25.1 million) in the plant, which will employ 160.
SRG is a wholly owned subsidiary of Guardian Industries Corp. of Auburn Hills, Mich., and molds functional and exterior plastic trim. SRG also does injection molding at its European headquarters in Llíria, Spain.
Caravelle purchases Quaker Plastics
SCHUYLKILL HAVEN, PA. Injection molder Caravelle International LLC has acquired Quaker Plastic Corp., a thermoformer and custom extruder in Mountville, Pa., for an undisclosed price.
Caravelle plans to consolidate Quaker's extrusion plant in Mountville and thermoforming plant in York, Pa., into its Schuylkill Haven headquarters location by the end of 2010, according to Quaker sales and marketing director Deb Haase.
Quaker had been owned by Wexco Inc., a York-based supplier of products for swimming pools. That market accounts for about 60 percent of Quaker's sales, Haase said. Other markets include heating, venting and air conditioning, and lawn and garden. The company posted sales of about $15 million in 2008.
The firm's 120 employees are split about evenly between Mountville and York. The Mountville plant covers 50,000-60,000 square feet, while the York plant is slightly smaller at 40,000-50,000 square feet.
Caravelle is the plastics unit of Cardinal Systems, a leading supplier of metal swimming pool components.
Mold maker's assets to be auctioned
MONTREAL Assets of Montreal mold maker Micro Moules Inc. will be sold at auction March 31.
The firm voluntarily declared bankruptcy Dec. 8. Trustee Raymond Chabot Inc. of Montreal sold the assets in February to M.G. Martin Auctioneers Inc., also of Montreal, which will auction them off at Micro Moules' premises.
One factor contributing to Micro Moules' demise was a cash drain the firm experienced after opening offshore subsidiaries, according to Raymond Chabot account representative Jean Gagnon.
Micro Moules' main secured creditor is Bank of Montreal.
Assets to be auctioned include several five-axis computerized numeric control machining centers, and electric disharge machines.
The auction will be held in U.S. dollars in conjunction with Biditup Inc., auctioneers based in Studio City, Calif.