Buyer sought for Utility Tool & Trailer, InfinitiMetals
By Bert Lehman
Paul Swanson, the attorney for Utility Tool & Trailer Inc. and InfinitMetals LLC, told the Clintonville Tribune-Gazette that the petition for receivership filed by both companies has been approved.
The approval took place at a court hearing on March 15.
Swanson said he is optimistic that an interested party will purchase the businesses and continue with its operations and move the businesses forward.
“A stakeholder receivership is really a pretty good way to do it,” Swanson said. “It’s an independent [person] appointed by the court and basically you get the highest and best bid in a structured and controlled setting. The bank is basically financing the operation of the business during this period.”
He added, “We’re all on board, including [Michael] Jensen (president of the businesses) that this should move forward.”
Also, as requested by the companies, William B. Everson was appointed to act as the Receiver.
Swanson said he has worked with Everson in the past under similar circumstances.
Swanson said Everson is currently soliciting potential purchasers for the businesses. Interested companies have to sign non-disclosure agreements, after which, information about the businesses, its products and customers is released to them.
“We will probably have an open stalking horse bid, I hope within the next 3-4 weeks,” Swanson said.
A stalking horse bid is the initial bid on the company’s assets. From a pool of bidders, the company in receivership chooses the company to make the first bid. Once the bid is made other potential buyers can submit competing bids for the assets. This method helps eliminate low bids.