CANTON, MA — Plymouth Rubber Company, and its wholly-owned subsidiary, Brite-Line Technologies, Inc., have emerged from Chapter 11, with new equity support from private equity firm Chrysalis Capital Partners, LP, and a new senior credit facility provided by Wells Fargo Business Credit. The companies’ Plan of Reorganization, which became effective Aug. 31, was approved by the U.S. Bankruptcy Court on July 26.
Plymouth Rubber manufactures vinyl and rubber tapes for use in the automotive, electrical and other industries; Brite-Line manufactures 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 Hamilburg, president and chief executive officer, will continue to run the companies.
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. The company will continue to manufacture vinyl tapes at Plymouth’s European operations and reflective tapes at Brite-Line’s plant in Denver.
Plymouth and Brite-Line both filed for Chapter 11 protection in July 2005, after their secured lenders and the Pension Benefit Guaranty Corp. (PBGC) could not reach agreement regarding the priorities of their respective liens. With the bankruptcy settlement, Plymouth’s Pension Plan has been terminated and its liabilities assumed by the PBGC.
