River Bend Industries has signed a letter of intent to buy Victor Plastics Inc. out of bankruptcy. Victor is a North Liberty, Iowa-based portfolio company of Spell Capital Partners that filed last month for Chapter 11 protection.
Victor Plastics, Inc. announced today that it has signed a Letter of Intent to sell the Company to River Bend Industries of Fort Smith, AR. The announcement was made by Tim Czmiel, Victor Plastics chief executive officer.
Victor Plastics filed for Chapter 11 bankruptcy protection on January 15 in U. S. Bankruptcy Court, District of Minnesota in Minneapolis.
Czmiel said that River Bend is a highly successful and respected
company in the plastic injection industry and he expects to sign a purchase agreement within the next 14 days. Following the execution of the purchase agreement with River Bend, a motion will be filed with the Bankruptcy Court for authority to hold an auction which will be open to all interested and qualified parties. The winning bidder will need to be approved by the Bankruptcy Court at a hearing to follow the auction.
“This is great news for Victor Plastics, its employees, creditors and communities,” said Czmiel. “River Bend is an outstanding and financially successful company.”
River Bend Industries and its predecessor companies have been a leader in plastic injection molding for more than 40 years. It is a supplier to Whirlpool, Exide Industries and the Husqvarna Group of Sweden.
“Two years ago our company faced many of the challenges that Victor Plastics sees today,” said Ron Embree, president and chief executive officer of River Bend Industries. “With our employees and customers we have made a tremendous turnaround.”
David Mack, managing director of MorrisAnderson & Associates, noted that the agreement with River Bend Industries is good news for all of the stakeholders in Victor Plastics. MorrisAnderson was retained by Victor Plastics as its investment banker.