A receiver for one of Australia's major plastic processors, Nylex Ltd., said the Melbourne-based firm could be broken up, as no bids have been made for the entire company.
McGrathNicol partner Johan Vorster said his team has 71 potential buyers for Nylex's eight business units, which went into voluntary receivership Feb. 11 after failing to win more-favorable financial terms from its bankers.
But he insists the 700-employee company will not be sold to firms looking to make a quick killing by sacking staff and selling assets.
There are some strong expressions of interest in Nylex from a very wide field. We are confident of finding a buyer for all the operations, but vultures need not apply, he said.
The sale will take about three months. Vorster said he hopes to have found a buyer for the entire company by then. His team is drawing up a short-list of prospective buyers that will proceed to due diligence and will have until April 30 to submit final bids.
Nylex, established in 1925, reported a loss of US$13.8 million for the fiscal year ended June 30, compared with profit of US$7 million the previous financial year.
The company makes low density polyethylene hoses, water tanks and piping for household, commercial and agricultural uses; polypropylene carpet and floor coverings; and automotive products such as fuel tanks, interior and exterior trims and injection or blow molded components. Nylex also makes the popular Esky brand of cold-storage boxes.
Meanwhile, Nylex Ltd. has been directed to lodge a A$500,000 (US$347,000) security for costs in an upcoming court action by its insurers against a resin supplier.
In a March 27 ruling, Victorian Supreme Court Justice Philip Mandie rejected arguments by Nylex subsidiary Nylex Corp. Pty. Ltd. that the order was unnecessary because its insurers would indemnify it if the damages action against Melbourne-based Basell Australia Pty. Ltd. failed.
The insurers will allege that Basell, part of Rotterdam, Netherlands-based LyondellBasell Industries AF SCA, supplied defective PP resins used for making geomembranes for dams, pools and tanks. After Nylex was placed in receivership, Basell sought a security of A$1.6 million (US$1.11 million) to cover its legal costs if the action against it failed.