The 2020 Mid-Year Economic Update_long

Plymouth Rubber, Brite-Line Exit Ch. 11

Plymouth Rubber Company, Inc., Canton, MA, and its wholly-owned subsidiary, Brite-Line Technologies, Inc., 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 Sept. 5, was approved by the U.S. Bankruptcy Court on July 26.


 


Plymouth Rubber is a 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,’ Hamilburg said.


 


“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 U.S. vinyl tape manufacturing operations to its joint venture in China, and plans to shift its U.S. 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.


 


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 U.S., Asia, and Europe.


 


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 U.S.

About the Author
Leave a Reply

Leave a Comment

Sign Up for the MDM Update Newsletter

The MDM update newsletter is your best source for news and trends in the wholesale distribution industry.

By subscribing, you are agreeing to MDM’s Privacy Policy.

2

articles left

Want more Premium content from MDM?

Subscribe today and get:

  • New issues twice each month
  • Unlimited access to mdm.com, including 10+ years of archived data
  • Current trends analysis, market data and economic updates
  • Discounts on select store products and events

0

articles left

This is your last free article

Subscribe to MDM Premium today and get:

  • Unlimited access to MDM.com
  • 1 year digital subscription, with new issues twice a month
  • Trends analysis, market data and quarterly economic updates
  • Deals on select store products and events

1

article
left

You have one free article remaining

Subscribe to MDM Premium to get unlimited access. Your subscription includes:

  • Two new issues a month
  • Access to 10+ years of archived data on mdm.com
  • Quarterly economic updates, trends analysis and market data
  • Store and event discounts

To continue reading, you must be an MDM Premium subscriber.