A Juneau County, Wis., Circuit Court judge has ruled against Wisconsin-based injection molder Tailor Made Products Inc. in a lawsuit filed by NTM Inc., after TMP failed to pay an assumed debt included in its acquisition of some NTM assets last year.
The court ordered April 1 that TMP pay $63,792 to NTM plus interest, late charges, penalties and attorney fees. TMP declined to comment for this story.
Tailor Made agreed to acquire NTM assets in March 2020. NTM, an Elroy, Wis.-based injection molder whose products included a proprietary sawhorse, had struggled to recover from a 2018 flash flood that badly damaged the building and equipment. TMP is also a housewares molder.
As part of the deal, TMP was expected to assume a debt of $63,792, which was credited to TMP by NTM at close, against the purchase price of $320,000, court documents show.
"Evidently they weren't happy the day of the sale," Larry Ormson, CEO of NTM, told Plastics News."The assets weren't what [TMP] thought," but in the case of the loan, "the assets didn't matter because they got paid to pay [the bank]."
On April 17, 2020, Hartland, Wis.-based TMP sent a letter to NTM refusing to pay the amount to CIT Bank, alleging it did "not know the location of" assets included in the deal and could not "assume a contract when it is impossible to comply with the terms of the contract," filings said.
NTM made monthly payments on the loan over the last year, Ormson said.