Plymouth Rubber, Brite-Line Exit Chapter 11
CANTON, Mass., Sept. 5 -- Plymouth Rubber Company, Inc., and its wholly-owned subsidiary, Brite-Line Technologies, Inc., announced today that they have emerged from Chapter 11, supported by an infusion of new equity from Chrysalis Capital Partners, LP, a private equity firm, and a new senior credit facility provided by Wells Fargo Business Credit. The companies' Plan of Reorganization, which became effective August 31, was approved by the U.S. Bankruptcy Court on July 26.
Plymouth Rubber is a leading manufacturer of high quality vinyl and rubber tapes for use in the automotive, electrical and other industries; Brite-Line manufactures high quality rubber reflective highway marking tapes and materials.
The businesses will continue to operate under the Plymouth and Brite-Line names, and the current management team -- led by Maurice J. Hamilburg, President and CEO -- will run the companies.
"This is an important and exciting day for all of us, as it marks our emergence from the bankruptcy process, and a new beginning," said Hamilburg. "Chrysalis's financial support will enable us to focus once again on delivering outstanding products and service to our customers."
This transaction is a solid fit with our investment rationale," said Greg Segall, Managing Partner of Chrysalis. "We quickly recognized the strong underlying business at Plymouth Rubber and Brite-Line, as well as the opportunity in partnering with its management team to take the company out of bankruptcy and pursue operational improvement. We look forward to working with management as they continue to execute on their business plan."
Plymouth has already relocated its US vinyl tape manufacturing operations to its joint venture in China, and plans to shift its US rubber tape manufacturing to a lower cost site in 2007. Manufacture of vinyl tapes at Plymouth's European operations and of reflective tapes at Brite-Line's plant in Denver will continue.
Plymouth and Brite-Line both filed for Chapter 11 protection in July, 2005, due to the inability of their secured lenders and the Pension Benefit Guaranty Corporation (PBGC) to reach agreement regarding the priorities of their respective liens. This uncertainty has been eliminated by the bankruptcy settlement, under which Plymouth's Pension Plan has been terminated and its liabilities assumed by the PBGC.
About Plymouth Rubber Company, Inc.
Plymouth Rubber Company, Inc., manufactures and supplies rubber and vinyl products to a broad range of markets, including the electrical supply industry, automotive and other original equipment manufacturers, and highway striping contractors. Headquartered in Canton, MA, the Company has operations in the US, Asia, and Europe. For more information, visit http://www.plymouthrubber.com/.
About Chrysalis Capital Partners
Chrysalis Capital Partners, LP, is a private equity investment firm with $300 million in committed equity capital under management. Chrysalis focuses on "special situation" investments, including turnarounds, restructurings, reorganizations and recapitalizations in a wide range of industries and circumstances throughout the United States. For more information, visit http://www.ccpfund.com/.