The company agreed in Delaware bankruptcy court to sell its US assets to Centrum Equities XV, a Tennessee based holding company which includes the Visteon aftermarket business, for $21.5 million. The bankruptcy filing does not include the supplier's non-US assets and operations.
"We have done everything possible to obtain a refinancing or to carry out our sale of the business since February 2008, when tornados destroyed our Southaven, Mississippi warehouse and much of the inventory," Charles Johnson, Proliance CEO said in a release.
The bankruptcy filing listed approximately $133.5 million of liabilities, including approximately $40.1 million under Proliance’s secured credit facility. Proliance’s restructuring counsel is Jones Day and its restructuring and financial advisor is Broadpoint Capital. Proliance operates 35 locations across 17 US states.
“The combination of Centrum’s resources and industry expertise and Proliance’s manufacturing and distribution capabilities will help get our business back on track faster and enable the combined Company to serve its customers in an exemplary way,” Johnson added.
After filing for bankruptcy, Proliance has requested the NYSE Amex Exchange to delist its common stock from trading. The supplier has no intention of re-listing its common stock on another exchange as it expects there will be no recovery to the common stockholders upon completion of the bankruptcy process.
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