7/1/2009
ROL Manufacturing Makes Progress with Restructuring Plan
Since April, the companies have been exploring sale proposals for the various business segments in which it operates, including exhaust hardware, engine gaskets and power steering hose.
ROL Manufacturing, which has been operating under creditor protection
in Canada under the Companies' Creditors Arrangement Act (CCAA) and
Chapter 15 in the United States, is in negotiations and due diligence
with potential buyers for various parts of the business.
ROL has received two court extensions to its CCAA stay of proceedings
with the latest set to expire Sept. 18. Since April, the companies have
been exploring sale proposals for the various business segments in
which it operates, including exhaust hardware, engine gaskets and power
steering hose. ROL reported that the negotiations and discussions have
taken much longer than expected due to the complex nature and
inter-dependence of all ROL facilities. Several parties have signed LOI
with ROL and the process is being monitored by the court and secured
creditors.
Officials at ROL said they expect to complete these transactions in the
next few months and that the extension to the stay of proceedings until
Sept. 18 should provide sufficient time for these transactions to be
finalized.
“It was our initial intention to restructure the company and maintain
our portfolio of multiple product lines. However, with tightening of
the credit markets (especially for automotive companies), general
economic conditions, and lower sales volumes in our OE business, it has
become necessary to change course and seek outside buyers of our
various business segments. Additionally, we are very enthusiastic about
the future for our customers, employees and other stakeholders, as all
of the engaged parties will be excellent stewards of our businesses,”
said Ken Labelle, chief restructuring officer, ROL Manufacturing.
I would just like to thank mr Labelle for all the Job Losses that were created from all this so called restructuring. I was an employee for 12 years with this company and now we have absolutly nothing to show for our dedication...... Thanks MR Labelle and hope your having fun driving around in your fancy car and all the plane rides you get to go on at the expense of the company
by: hawk310 7/3/2009