Rotational molder Rotonics Manufacturing Inc. is unable to pay its debts and officials have filed court papers seeking the transfer of its property to a trustee to sell or liquidate the company.
Proceeds would be used to pay creditors.
Rotonics posted the trust agreement, dated Jan. 18, on its website. The company, based in Commerce City, Colo., has rotomolding plants there and in Maple Plain, Minn., and Bensenville, Ill.
All three plants apparently are still operating.
Rotonics also posted on its website a letter dated Jan. 20 from James Cullen, the trustee under the trust agreement. “The company's lender is providing short-term financing and funding payroll,” Cullen wrote.
Cullen, who did not return a telephone call for this story, said in the letter that he is looking at all options.
“At the present time, we believe that the value of the trust's assets will be maximized through the sale of the company's business as a going concern, so we are in the process of trying to work out a financing arrangement with the company's lenders in order to allow us to sell the business as a going concern if possible.”
He wrote, “We will be soliciting bids for the sale of the trust assets.”
One other document was posted on Rotonics' website: a letter of consent to set up the trust, signed by Randall Patterson, listed as Rotonics' sole stockholder.
The trust would fall under the jurisdiction of either the U.S. District Court for the Northern District of Illinois or the Circuit Court of Cook County, Ill.
Rotonics was founded by Sherman McKinniss, who sold the company in 2001.
Since then the company has been split, most recently when Rotonics sold its tank molding division in 2010 to Norwesco Inc. and Snyder Industries Inc.