Rockford Products To Be Auctioned
Rockford Products To Be Auctioned
Jason Sandefur
Rockford Products Corp. won court approval to conduct a quick auction of its auto fasteners division, despite objections from unsecured creditors, the Associated Press reports.
The decision comes two days after Rockford Products claimed in a court brief that it had “run out of money and time.” 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. The official committee of unsecured creditors accused Rockford of “attempting to force a quick sale process to pay their alleged secured creditors.”
The auction may go forward without a lead bidder or proposed purchase price, according to AP. Rockford indicated it was close to reaching a deal with a potential buyer that it declined to identify.
An auction is scheduled for Nov. 12.
While selling off its two smaller divisions, Rockford Products has been unable to ink a deal for its cold-formed products division, which employs about 400 workers to manufacture ball studs, brackets and specially engineered bolts for the automotive industry, as well as for such larger customers as Federal-Mogul Corp. and Caterpillar Inc.
Rockford Products sold its retail fastener and auto parts line to RB Distribution for $3.4 million in August. And Field Fastener recently paid about $300,000 for its OEM distribution operation.
Slow automotive products sales and rising pension costs forced Rockford Products to file for Chapter 11 bankruptcy protection on July 25. The company, which was founded in 1929 as Rockford Screw Products, reported 2006 sales of $101 million. Web: rockfordproducts.com �2007 FastenerNews.com
There are no comments at the moment, do you want to add one?
Write a comment