Rockford Products Crafting Creditor Deal
Rockford Products Crafting Creditor Deal
Jason Sandefur
Officials from Rockford Products Corp. reportedly traveled to Detroit for a meeting with the bankrupt fastener manufacturer’s chief financier and top customers.
“We’re trying to create a three-party agreement between our key customers, our lender and the company to provide for continuing operation, continuing production while we continue to seek a buyer,” company financial consultant Mike Silverman told the Rockford Register Star.
Slow automotive products sales and rising pension costs forced Rockford Products to file for Chapter 11 bankruptcy protection on July 25. The company reportedly has more than $11 million outstanding with its top 20 unsecured creditors, and a total of 900 creditors are owed undisclosed sums.
Under deadline, Rockford Products is working to finalize a new credit deal to continue operating until the end of January, when it hopes to have found a buyer for it cold formed products division, which accounts for 75% of company revenue. Lacking that, Rockford Products faces liquidation.
MacLean-Fogg had expressed an interest in the division, but backed away from negotiations without making an offer.
Rockford Products sold its retail fastener and auto parts line to Dorman Products affiliate RB Distribution for $3.4 million in August. And Field Fastener recently paid about $300,000 for its OEM distribution operation.
Founded in 1929 as Rockford Screw Products, Rockford Products manufactures and distributes ball studs, cold formed fasteners and other specialty products. The company reported 2006 sales of $101 million. Web: rockfordproducts.com �2007 FastenerNews.com
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