Lofthouse Brass plant officially on the market

by Rob Learn

Apr 23, 2008

BURK’S FALLS – Lofthouse Brass Manufacturing Limited is officially on the market as part of the bankruptcy protection process the company is currently operating under.

Offers on the company, including its 70,000 square foot plant in Burk’s Falls, are being accepted until May 8, while the Lofthouse continues to operate under the court order protection from its creditors.

A court order dated April 11, but not posted on the receiver’s website until late last week, outlines the company’s operations, distribution of assets and the timeline for completing a sale.

It also grants the company an extension on the original protection order from May 1 until June 14.

General manager Darwin Dunn says that he is already starting to tour prospective buyers through the Burk’s Falls site, with varying degrees of interest.

“Some (prospective buyers) are really intense and some are just kicking tires,” said Dunn.

He would not give any more details about the prospective buyers except that he is aware of about “half-a-dozen” expressing some interest.

Lofthouse’s receiver, A. Farber and Partners, describe the brass, copper and aluminum component manufacturer in the listing on their website, as “a North American leader in the production and machining of non-ferrous metal forgings . . . for numerous industries including the kitchen and bath, automotive, hardware, medical, HVAC and solenoid industries.”

The listing states that all company assets are being offered including the land and buildings in Burk’s Falls, the machinery and equipment, the inventory, the office equipment and the accounts receivable and customer list.

“Offers are being sought for the purchase of the Assets on an “as is where is” basis,” states the listing.

Already finding a buyer is the property that until recently housed a second plant in Whitby.

The court order states that the Whitby property was subject to an offer from Timbren Industries – a rubber automotive part manufacturing company. The deal was scheduled to close on April 15, but no further details have been made available about the transaction.

As for the sale of Lofthouse’s operational assets, the court has outlined a tight timeline for the sales process.

By April 17, the receiver and company were to have contacted potential purchasers; advertised the property and business, “en bloc or piecemeal” nationally in the Globe and Mail; posted pertinent information on the receiver’s website; and given interested parties access to additional data and opportunity to conduct site visits, provided they have completed confidentiality agreements.

The deadline for offers is 4 p.m. Toronto time on May 8. On May 9 and 10, negotiations are to take place with preferred purchaser(s). By May 14 the company, receiver and preferred purchaser is to seek court approval of the sale and close the sale by May 20.

The tight timeline is not discouraging Dunn, who says the Burk’s Falls plant remains focused on getting parts out the door.

“We had amazing sales last week. I’m really proud of everybody here and the job they are doing,” said Dunn.

The manager also said that the story in last week’s Almaguin News reporting on a notice to Lofthouse’s creditors did not paint a complete picture of the company’s financial situation.

“That report didn’t take into account the millions of dollars owed to Lofthouse, the millions of dollars of inventory sitting on the floor and the orders we’re still working on,” said Dunn. He also pointed out that the list was outdated and many of the accounts had been cleared.

The creditor’s list was also published prior to the sale of the Whitby plant.

Dunn says the interest in the company and the continued production of parts is keeping him optimistic.

“I feel very strong since the last two weeks that Lofthouse will survive this,” said Dunn.

Lofthouse Brass employs 130 people at its Burk’s Falls operation.