YALE, Mich., Oct. 20 (UPI) -- Margate Industries in Yale, Mich., said Wednesday its Yale Industries unit will begin a voluntary liquidation plan.
The provider of specialty services to the foundry industry said it continued to lose money because of insufficient customer-based sales.
The company also said it does not have the resources or credit capabilities to convert its current operation, Yale Industries Inc., into another business. The company also said it is being sued by the trustee attorneys for the bankruptcy of New Haven Foundry, which is claiming the company received preferential payments in excess of $1 million dollars.
Yale said it will immediately begin selling its assets to pay the bank and its creditors.
The company will also attempt to find an existing non-public entity that would be interested in going public and offer the Margate shareholders stock in exchange for their stock.
Margate Industries primary services include finishing, chipping and grinding, cleaning, shot blasting and painting of castings produced by its customers for the automotive industry.
Margate has one wholly owned subsidiary, the Brown City Casting Corp., doing business as Yale Industries.
