ERJ staff report (TB)
Youngstown, Ohio - GCA Tire L.L.C., an as-yet unidentified entity, has notified the U.S. bankruptcy court handling Denman Tire L.L.C.'s bankruptcy that it is preparing a $2.5 million bid for the firm's assets and plans to reopen Denman's closed factory and resume business there.
GCA Tire petitioned the U.S. Bankruptcy Court, Northern District of Ohio, Eastern Division on May 12 to block a pending $1.2 million offer for selected assets by antique and vintage tyre distributor Coker Tire Co. Inc., which is based in Chattanooga, Tenn.
The documents filed with the court do not identify who's behind GCA Tire, and the entity's attorney, Joseph Bishara of Roth, Blair, Roberts, Strasfeld & Lodge in Youngstown, did not return calls and e-mails asking for information on the identity of GCA and/or its principals.
GCA did, however, state in its filing it is â€œin the process of providing the Trustee reasonable evidence that GCA is a qualified and financially responsible purchaser or bidder.â€
GCA told the court in its filing it is willing to bid for the assets at auction should the trustee not accept its offer outright. The company also told the court its legal counsel has a check for $300,000 to be deposited with the court upon completion of an asset purchase agreement with Denman's trustee.
In its document GCA said it's bidding for all the assets Coker identified in its April 28 bid plus â€œall equipment, tools, vehicles, production lines and all of any additional operating assetsâ€ of the debtor.
GCA acknowledged that the trustee already has agreed to sell certain inventory-identified as the Denman-brand and Interco-brand inventories-to third parties and will not dispute these agreements.
Should the court accept its offer, GCA said it would â€œreopen the business formerly operated by the Debtor (Denman) as a going concern in Debtor's former business locations if financially feasible.â€
From Tire Business (A Crain publication)