ERJ staff report (TB)
Youngstown, Ohio - During a May 19 US Bankruptcy Court auction in Youngstown, Titan Tire Corp. succeeded in a bid for most of Denman Tire LLCÂ´s assets, according to a Titan spokeswoman.
A local media report said the Quincy, Illinois-based tyre and wheel manufacturer warded off all comers with a bid of $4.4 million for Denman's tyre moulds, drawings, trade name and other assets, although the Titan spokeswoman could not confirm that, telling Tire Business she did not have all the details on the deal.
According to the report, the attorney representing Titan at the hearing declined to comment on the company's plans for Denman, but Titan didn't buy the factory where 260 workers lost their jobs when Denman shuttered production in February.
The report, in the Youngstown Tribune Chronicle, said the United Steelworkers union won priority rights to share proceeds from Denman's liquidation for claims 180 days before production ended. Proceeds will be used to help meet the claims of workers, several of whom have been impacted by lost wages and high medical costs, the paper added.
Prior to Titan's purchase, GCA Tire LLC, an entity set up by Garden Club Angels of Youngstown LLC, outbid Coker Tire Co. Inc. with a $2.5-million offer for some of Denman's assets, but that offer had been pending when Titan made its move.
From Tire Business (A Crain publication)
Press release from Titan