The sale of compounder and recycler Michael Day Enterprises Inc. to Italian plastics maker Radici Group was approved Jan. 13 by a bankruptcy judge.
Radici was the stalking horse bidder in the deal and will pay $5.7 million for the assets of Wadsworth, Ohio-based MDE. The order was approved by Judge Marilyn Shea-Stonum in U.S. Bankruptcy Court in Akron.
MDE had filed for Chapter 11 bankruptcy protection Nov. 10, citing assets and liabilities each valued at between $10 million and $50 million. Officials said at the time that MDE had been hurt by a decline in business, particularly from the automotive sector, which makes up a majority of its sales.
No other qualifying bids for MDE were received, according to a court filing made by Mark Merklin, an attorney for the firm's debtors.
Officials with MDE and with Bergamo, Italy-based Radici could not be reached for comment on the sale. MDE President Michael Cain told Plastics News in November that the firm had done a lot of heavy lifting in the previous 18 months to preserve the company and to continue to supply its customers.
Radici previously had operated a North American compounding plant in Blacksburg, S.C., but closed the site in 2007.
MDE employs 84 and posted sales of almost $44 million in its 2009 fiscal year, which ended Sept. 30.
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