GPX to auction manufacturing assets (updated)

Tire Business staff report

Boston, - OTR and industrial tyre maker/distributor GPX International Tire Corp. plans to auction off its manufacturing assets - including tyre plants in Maine and China and a wheel plant in Pennsylvania - as part of its Chapter 11 bankruptcy protection filing.

GPX's manufacturing assets-listed in its Chapter 11 filing as “Solid Tire Assets”-are its solid tyre plant in Gorham, Maine, a speciality wheel plant in Red Lion, Pa., and its pneumatic and solid tire plant in Hebei, China.

GPX is listing these assets separately from the distribution and brand name rights being sold to Alliance Tire Co. (1992) USA Ltd. and 2220753 Ontario Inc., the latter a group involving Dynamic Tire Corp. executives Robert Sherkin and Peter Koszo.

GPX said it is “actively working” working with a potential buyer and expects to have sale agreements in place before the Alliance and Dynamic deals close. GPX suggests a minimum bid of $9 million plus assumed liabilities.

GPX has asked the court to allow it to solicit bids for these assets to ensure an “orderly sale process and promote the maximum recovery for the Solid Tire assets,” according to court filings. The request includes permission to sell “any combination of the Alliance assets, Dynamic assets and/or the Solid Tire assets.”

GPX acquired the Hebei and Gorham plants in 2006, the latter in its purchase of Maine Industrial Tires Ltd. In 2008 it consolidited some solid tyre production at Gorham from the Mississauga, Ontario, plant it was closing. GPX predecessor Galaxy Tire Co. bought the Red Lion plant in 1997.

The Solid Tire business generated sales of $66 million in 2007 and 2008 and is projected to produce $45 million this year. The business has 110 employees in the US, 20 in Canada and 1,282 in China.

Together the Gorham and Hebei plants have annual solid tire capacity of 20 000 tons.

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GPX to auction manufacturing assets (updated) from Tire Business (a Crain publication)