Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comTaylor-Wharton International LLC files for Chapter 11 Bankruptcy Protection
Author: Joel R. Glucksman|December 9, 2015
Taylor-Wharton files Chapter 11
Taylor-Wharton International LLC files for Chapter 11 Bankruptcy Protection
Taylor-Wharton files Chapter 11
Taylor-Wharton International LLC, a major designer and manufacturer of cryogenic equipment, announced that it had filed for Chapter 11 bankruptcy protection. According to a Law 360 report, the company plans to hold an asset auction sale with Haier Medical and Laboratory Products USA Inc. serving as the stalking horse bidders for $24 million in cash, with the winning bidders assuming most of Taylor-Wharton’s debt liabilities.
In its bankruptcy petition, Taylor-Wharton stated the fact that it had not fully recovered from its previous Chapter 11 bankruptcy filing in 2009. In turn, the company could not effectively streamline its operations to achieve profitability, despite multiple new capital infusions and the sale of a portion of its subsidiaries. According to Law 360, Taylor-Wharton listed debt totals between $100 million and $500 million and assets within the same range in its court papers.
After it emerged from bankruptcy in 2010, the company operated one U.S. manufacturing plant located in Alabama, as well as subsidiary operations in China, Malaysia, Slovakia, Australia and Germany. There is no word yet on whether these overseas operations will continue after the company’s auction sale.
The company has filed the usual first-day motions, including requests to the court to continue to compensate employees and vendors. These also include motions to block utilities from halting service and to continue management of company bank accounts.
Taylor-Wharton also stated that the company intends to sell its primary manufacturing plant in Alabama in addition to other assets. Further, the company will file a motion to establish the bidding process for a stalking horse sale with Haier Medical providing the initial offer for the $24 million CryoScience division. The winning bidder will also enter an agreement to assume ownership of a portion of Taylor-Wharton’s debt load.
The firm’s objective is to sell all of its remaining assets during the bankruptcy period. This will also involve equity in the company’s foreign subsidiaries, which are not associated with Taylor-Wharton’s debt liabilities.
Further, Taylor-Wharton plans to use debtor-in-possession financing with a revolving facility up to $13.8 million. This financing will be used to maintain operations for its 164 employees.
Are you a creditor in a bankruptcy? Have you been sued by a bankrupt? If you have any questions about your rights, please contact me, Joel Glucksman, at 201-806-3364.
Taylor-Wharton International LLC files for Chapter 11 Bankruptcy Protection
Author: Joel R. Glucksman
Taylor-Wharton International LLC, a major designer and manufacturer of cryogenic equipment, announced that it had filed for Chapter 11 bankruptcy protection. According to a Law 360 report, the company plans to hold an asset auction sale with Haier Medical and Laboratory Products USA Inc. serving as the stalking horse bidders for $24 million in cash, with the winning bidders assuming most of Taylor-Wharton’s debt liabilities.
In its bankruptcy petition, Taylor-Wharton stated the fact that it had not fully recovered from its previous Chapter 11 bankruptcy filing in 2009. In turn, the company could not effectively streamline its operations to achieve profitability, despite multiple new capital infusions and the sale of a portion of its subsidiaries. According to Law 360, Taylor-Wharton listed debt totals between $100 million and $500 million and assets within the same range in its court papers.
After it emerged from bankruptcy in 2010, the company operated one U.S. manufacturing plant located in Alabama, as well as subsidiary operations in China, Malaysia, Slovakia, Australia and Germany. There is no word yet on whether these overseas operations will continue after the company’s auction sale.
The company has filed the usual first-day motions, including requests to the court to continue to compensate employees and vendors. These also include motions to block utilities from halting service and to continue management of company bank accounts.
Taylor-Wharton also stated that the company intends to sell its primary manufacturing plant in Alabama in addition to other assets. Further, the company will file a motion to establish the bidding process for a stalking horse sale with Haier Medical providing the initial offer for the $24 million CryoScience division. The winning bidder will also enter an agreement to assume ownership of a portion of Taylor-Wharton’s debt load.
The firm’s objective is to sell all of its remaining assets during the bankruptcy period. This will also involve equity in the company’s foreign subsidiaries, which are not associated with Taylor-Wharton’s debt liabilities.
Further, Taylor-Wharton plans to use debtor-in-possession financing with a revolving facility up to $13.8 million. This financing will be used to maintain operations for its 164 employees.
Are you a creditor in a bankruptcy? Have you been sued by a bankrupt? If you have any questions about your rights, please contact me, Joel Glucksman, at 201-806-3364.
