Hampton Union, Friday, March 31, 2006
[The following article is courtesy of the Hampton Union and Seacoast Online.]
HAMPTON-The bankrupt Foss Manufacturing is ready to be sold.
That is according to court documents filed in federal bankruptcy court by the trustee overseeing the company.
Trustee Patrick O'Malley wants the bankruptcy judge to approve bidding procedures for the sale of all the company's assets.
A hearing on the matter has been scheduled for today.
In the last several months, O'Malley has been working with the investment banker firm of Gordian Group LLC to market the company to potential buyers.
"The trustee has received numerous expressions of interest," stated O'Malley in court documents in support of the motion.
O'Malley stated he is ready to move forward.
Foss Manufacturing filed for bankruptcy in September after its chief lender, CapitalSource, cut off credit, alleging the company fraudulently borrowed millions of dollars to benefit itself and company insiders.
Creditors stated in a court document that they think "Foss was experiencing financial distress dating back many years."
The Hampton-based company with 375 employees manufactures nonwoven fabrics and synthetic fibers.