Nailite International Inc. has exited Chapter 11 bankruptcy and is under new ownership after a bidding process in which no other company bid higher than Premier Exteriors LLC, which had served as a stalking-horse bidder since the Feb. 13 bankruptcy filing.
The deal is worth about $8.7 million, as Premier had a credit bid of $8 million and agreed to pay $650,000 in cash. According to court documents, a little more than $160,000 will pay off a claim from the Miami-Dade County tax office, and an additional $250,000 will be set aside for other unsecured creditors.
Miami-based Nailite injection molds polypropylene siding panels designed to mimic cedar shake and masonry products. It had been owned since 2003 by Philadelphia-based investment firm Graham Partners Inc. Hamilton, N.J.-based Premier also is a Graham affiliate.
Premier provided $3 million in debtor-in-possession financing that kept the company operating.
In February, Graham said Nailite's year-over-year profit fell 176 percent from the fourth quarter of 2007 to the same period in 2008, a direct result of the home-construction slowdown.
Nailite sales are overwhelmingly geared toward residential construction, split almost evenly between new construction and remodeling projects, Graham officials said previously.
The company had between $50 million and $100 million in assets and debts, according to the bankruptcy filing.