Proliance Files for Bankruptcy, Plans Sale

(Reuters) – Auto parts supplier Proliance International Inc (PLI.A) filed for bankruptcy protection in a Delaware court Thursday and said it agreed to sell all its U.S. assets to Centrum Equities XV LLC for $21.5 million.

The company, which makes aftermarket heat exchange and temperature control products, said the sale would be supervised by the bankruptcy court.

Proliance said the filing does not include its non-U.S. entities or operations.

“We have done everything possible to obtain a refinancing or to carry out our sale of the business since February 2008, when tornados destroyed our Southaven, Mississippi warehouse and much of the inventory,” Charles Johnson, chief executive of Proliance, said in a statement.

“However, the condition of the financial markets has made it impossible to find a viable financing package outside bankruptcy.”

In documents filed with the court, Proliance listed assets in the range of $50 million to $100 million and liabilities in the range of $100 million to $500 million.

Proliance operates about 35 locations across 17 states in the United States, according to the company’s website.

The case is In re: Proliance International Inc, U.S. Bankruptcy Court, District of Delaware No. 09-12278. (Reporting by Santosh Nadgir in Bangalore; Editing by Gopakumar Warrier)

peHUB Note: Centrum’s financial partner on the deal would be Wynnchurch Capital