Bankrupt resin supplier Thornton & Co. Inc. expects to be acquired by Axxom LLC.
Princeton, N.J.-based Axxom plans to submit a $3.7 million bid for Southington, Conn.-based Thornton at an auction on Nov. 23. If no higher bids are received, Axxom will acquire Thornton's inventory and intellectual property assets, but not the firm's accounts receivable or other litigation assets, officials said in a Nov. 3 news release.
“We are gratified with the market interest in investing in [Thornton], and [are] very pleased that Axxom has faith in our ability to once again run a thriving business that allows us to service our valued suppliers and customers,” CEO and founder Paul Thornton said in the release.
If Axxom wins the bid, Thornton is expected to resume normal-course resin brokerage operations as part of Axxom. No information about Axxom was included in the release.
Thornton filed for Chapter 11 bankruptcy on Aug. 10, citing a major drop in petrochemical prices in late 2014 and early 2015 as a reason. Those drops caused the firm's sales to decline by 20 percent. The filing was made after Thornton's main bank — People's United of Bridgeport, Conn. — rejected a proposed repayment plan.
Vice President Jake Thornton said in early September that the firm had reached an agreement with the bank that would allow Thornton to continue to operate and sell down inventory.
Thornton officials have said the firm had annual sales of about $200 million and annual sales volume of more than 300 million pounds, mostly in prime and off-grade polyethylene and polypropylene.