Page 26 - Plastics News May 2020

Techniplas files for Bankruptcy, signs a deal Commercial Plastics buys Minnesota injection
with Noteholders molder

echniplas, LLC (the "Company"), a provider of l l i n o i s - b a s e d
Thighly engineered technical solutions to the IC o m m e r c i a l
automotive, transportation, and industrial markets, Plastics has bought
has entered into an agreement with a group of Minnesota injection
noteholders holding approximately 95% of its senior molder Imperial
notes that would position the Company to transform its P l a s t i c s . T h e
balance sheet while maintaining its high standards for company was sold
quality and customer service. To facilitate the t o C o m m e r c i a l
Company's sale process and transition to a more Plastics last week,
sustainable capital structure, the Company and its U.S. affecting both of
Imperial Plastic's
manufacturing plants in Lakeville and Mora. Imperial
Plastics, a highly engineered custom injection plastics
molder specializing in thermoplastic manufacturing
from components through final assembly and retail
packaging is the fourth largest employer within the
City of Mora with approximately 200 employees in that
location. Commercial Plastics acquired the assets of
Imperial Plastics on Friday, April 10, 2020. These
assets include the 400,000-square foot facility in
subsidiaries have filed for voluntary Chapter 11
Mora; the Lakeville property is leased. Commercial
protection in the U.S. Bankruptcy Court for the District
of Delaware. The Chapter 11 filings and restructuring Plastics has three other plastic manufacturing plants
process do not include the Company's subsidiaries located in Mundelein, Illinois; Waverley, Nebraska;
outside of the United States; Techniplas's international and Kenosha, Wisconsin. Commercial Plastics is co-
customers and operations, as well as the majority of owned by brothers Bill and Matt O'Connor. CEO Matt
those in the U.S., will not be impacted by this process. O'Connor said the purchase will increase Commercial
Ali El-Haj, Techniplas's Chief Executive Officer, said, Plastic's overall footprint —especially with the
"We are proud of the confidence represented by the addition of the Mora location. The acquisition of
agreement with our noteholders. This solution charts a Imperial Plastics assets will approximately double the
positive path forward for the Company, despite the size of Commercial Plastic's employees and square
challenges. We are confident the proposed transaction footage. Matt first toured the Mora location in January.
will make us a stronger partner and employer, better “To be honest, we were excited about what we saw ...
able to focus our U.S. footprint, operations, and The equipment and capabilities in Mora is extremely
utilization. We look forward to emerging from this impressive,” he said. All of Imperial Plastic's
process swiftly with an improved financial structure employees have been asked to re-apply to their jobs as
and balance sheet. Backed by marquee institutions, we part of the on-boarding process. Matt said he was
are laser-focused on sustainable growth. The proposed
excited about future growth, hiring more employees
transaction would allow Techniplas to emerge with a
and expanding. “We're excited about coming to Mora
significant reduction in overall debt and interest
and we are staying in Mora,” Matt said. While the
expense. The Company has also entered into an
purchase process began before the coronavirus
agreement through which certain of its noteholders
pandemic struck the United States, it has complicated
and Bank of America, N.A., as agent and lender under
the change in ownership.
the Company's ABL credit facility.

MAY 2020 26 Plastics News