Sunstone Components Group has signed a letter of intent with Pancon Corp. to sell substantially all of the company’s assets. Sunstone said it has consented to involuntary Chapter 11 petitions filed against it in April. Sunstone expects to complete the sale to Pancon and emerge from Chapter 11 in about 75 day. Temecula, Calif.-based Sunstone provides precision metal stamping and insert injection moldings. Pancon is backed by Milestone Partners.
Sunstone Components Group, a leading provider of precision metal stamping and insert injection moldings, today announced that it has signed a Letter of Intent (LOI) with Pancon Corporation to sell substantially all of the Company’s assets.
Headquartered in Stoughton, Mass., Pancon Corporation manufactures custom and standard connectors that are used in power and signal applications and multilayer polymer capacitors across varied industries, including automotive. Pancon also has the strong backing of its private equity owner, Milestone Partners.
To facilitate the sale and establish a process for the receipt of higher and better bids, the Company has consented to the involuntary Chapter 11 petitions filed against it on April 5, 2013. Sunstone Components Group is expected to complete the sale and emerge from Chapter 11 in approximately 75 days.
“This transaction is a positive development for our company, our customers and our employees,” said Sunstone Components Group Chairman and CEO Brad Adams. “We are pleased to have attracted a strong strategic partner for our business with the resources necessary to secure a strong future for our company.
“After careful consideration, we have decided to consent to the involuntary Chapter 11 proceedings. The Chapter 11 process is essentially a tool that will allow us to complete the sale swiftly and ensure a smooth transition.”
The Company also announced that in addition to having continuing availability under its existing facility with Comerica, it has obtained commitments for approximately $220,000 in debtor-in-possession (DIP) financing, pending Court approval. As a result, the Company has the availability of approximately $2.2 million to meet its ongoing obligations to customers, suppliers and employees during the brief Chapter 11 and sale process.
Customers should see no changes while the company completes the sale of its business. Sunstone Components Group does not intend to reduce its workforce as a result of the filing, and employees will continue to work their usual schedules and receive normal compensation and benefits, pending routine Court approval.
“Throughout the sale process and beyond, our daily operations will continue without interruption,” Adams said. “We will continue to manufacture and deliver the high-quality, mission-critical components our customers require. It will be business as usual while we complete the sale.”
On May 2, 2013, the Company consented to involuntary Chapter 11 petitions filed against it in the U.S. Bankruptcy Court for the Central District of California in Riverside. The Company is represented by Landau Gottfried & Berger LLP in its Chapter 11 proceedings.
About Sunstone Components Group
Sunstone Components Group was originally established in 1981 as Solid State Stamping (S3). In April 2008, Solid State Stamping acquired Molding International and Engineering (MIE), an insert molder based in Temecula, Calif. At that time, Solid State Stamping changed its name to Sunstone Components Group, and MIE along with S3 began operating side by side. Today the Company provides precision metal stamping and insert molding and is a leading manufacturer of complex and mission critical components.