Custom injection molder Innatech LLC, dba Dynamic Mold, has filed for protection under Chapter 11 of the U.S. Bankruptcy Code.
The Rochester, Mich.-based firm filed voluntarily in court in Detroit on March 23, documents show.
In a letter to creditors and vendors sent March 24, Innatech blamed its problems on a change in ownership of its lender Bridge Finance Group of Chicago. Under the new ownership of New York hedge fund specialist Fortress Investment Group LLC, Bridge Finance is trying to exit Innatech's term loan. It also has cut off the molder's line of credit and begun to take steps to pay it off through the application of receivables collections, according to Innatech.
Innatech and Bridge have not been able to agree on a new lender to replace the existing term loan and working line of credit.
Innatech decided to try to refinance its term loan and working line of credit through a controlled financial restructuring. It hopes to file a plan of reorganization within 75 days. The plan is going well but there is no indication of when it will be completed, sales and marketing manager Craig McCardell said by telephone.
Innatech maintains it will continue to fill customer orders and pay vendors, and plans no changes in support, service or business operations. The company's injection molding plants are in Richmond, Ind., and Lebanon, Ohio. It does mold building in Rochester, and assembly in Middletown, Ohio. Automotive and consumer products are two key markets.
Amherst Capital Partners LLC is acting as financial adviser for the restructuring; Clark Hill plc is legal adviser.
Innatech's major unsecured creditors include PolyOne Corp. of Avon Lake, Ohio ($124,014), Advanced Composites of Nashville, Tenn. ($97,614), A. Schulman Inc. of Fairlawn, Ohio ($87,918) and software supplier Infor of Alpharetta, Ga. ($183,900).
In its letter to customers and vendors, Innatech admitted a critical period of cash management about two years ago, and [we] have been steadily improving our financial and operational processes since that time.
We have been growing increasingly optimistic with our path to recovery and are confident that better times are ahead.
A meeting of unsecured creditors is set for April 28 in Detroit.
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