53.8 F
Laguna Hills
Tuesday, Mar 19, 2024
-Advertisement-

ARI Buyers Emerge

Two possible buyers have emerged to take over bankrupt auto parts maker American Remanufacturers Inc. of Anaheim, according to court records.

Hedge fund Black Diamond Commercial Finance LLC has bid $7.8 million for three of ARI’s facilities, including its headquarters in Anaheim plus factories in Bedford, N.H., and Independence, Ohio.

ATSCO Acquisition LLC has proposed buying ARI’s Glendale, Ariz., plant for

$1.6 million.

The deals must be approved by a bankruptcy court judge in Delaware.

The trustee in ARI’s bankruptcy case held an auction on Dec. 15 in Philadelphia to take bids to buy the privately held company as a whole or in parts.

ARI slipped into bankruptcy in early November, saying later that month that it would pursue a sale of the company’s assets instead of restructuring under federal bankruptcy protection. The company had failed to secure $30 million in financing needed to weather the down times.

ARI, based near the intersection of Orangethorpe Avenue and Kraemer Boulevard, let go its 750 workers in Anaheim in November. Before it halted operations, the company employed about 1,650 people worldwide.

It remains unclear what will happen to ARI’s two Anaheim buildings. It appears that Black Diamond would assume the unexpired leases on the buildings, which have a total of 278,600 square feet, according to court records.

An Anaheim official previously said that the owners of the property, Crossroads Distribution Corp. of Simsbury, Conn., told the city that the industrial zoned buildings and 11.4 acres of land would be sold.

ARI’s machinery, inventory and “other property” at those facilities would be sold to Black Diamond, according to court records.

ARI made new and remanufactured “undercar” products, including axles, brakes and power steering components. Remanufactured parts are worn-out parts that get overhauled.

The company, which ran into trouble from overseas competitors and a surge in raw material costs, is one in a string of auto parts suppliers to have filed for bankruptcy this year. Others include Delphi Corp, Collins & Aikman Corp., Meridian Automotive Systems Inc. and Tower Automotive Inc.

ARI, which posted $270 million in annual revenue, listed assets of $10 million to $50 million and debts of more than $100 million, according to bankruptcy documents.

The company had grown through a series of acquisitions during the past decade, pushing it to become the second largest remanufacturer of undercar auto parts in the U.S.

Want more from the best local business newspaper in the country?

Sign-up for our FREE Daily eNews update to get the latest Orange County news delivered right to your inbox!

-Advertisement-

Featured Articles

-Advertisement-
-Advertisement-
-Advertisement-
-Advertisement-

Related Articles

-Advertisement-
-Advertisement-