Injection molder UFE Inc. has entered receivership under an order from a federal judge, but the company continues to operate and is seeking a new owner.
The company recently opened a Class 8 clean room at its Osceola, Wis., facility and headquarters and is hoping to expand the clean room in the future, said Arvid Ledin, sales director, and Corey French, general manager for the Osceola plant.
Molding also continues at UFE's other plants in El Paso, Texas; Mexico and Singapore, they said.
The activity comes despite a decision from U.S. District Judge George Caram Steeh in Detroit sending UFE and its owner metal components maker Catalina Precision Products Inc. of Canton, Mich. into receivership.
UFE and Catalina were named by lender Comerica Inc. in an Aug 4 filing with the court. The bank said the companies were in default on multiple loans, dating to 2009, worth more than $7 million.
The bank went on to say in documents that it was informed that all executives and all members of the companies' board of directors had resigned and that on July 23, the companies told Comerica that they had ceased operations and would liquidate the assets.
Comerica asked the court to appoint a receiver that would oversee the liquidation to ensure an orderly wind down of its operations. Steeh appointed Conway MacKenzie Inc., a Birmingham, Mich.-based turnaround and management company, as receivers.
Ledin and French said they could not discuss court actions, but said Conway MacKenzie personnel are now working with UFE to help lead it through a potential sale, rather than liquidation.
UFE injection molds gears and other tight-tolerance products for the medical, auto and consumer-products industries. Catalina bought the firm in 2008 in a move to diversify its operations.
In 2009, the company closed its Stillwater, Minn., plant which had also served as UFE's headquarters to consolidate operations in Osceola, Wis. In January, the company temporarily closed its El Paso plant because it lacked funds to pay workers, but later said it had repaid all workers and was back in full operation.