COLUMBUS (WCMH) — Columbus Castings said this week it has received a letter of intent from an unnamed third party for the acquisition of its assets.
The announcement of a potential buyer for Columbus Castings comes at the same time its parent company, Constellation Enterprises, filed for Chapter 11 bankruptcy in order to restructure its debt. Columbus Castings is one of four industrial subsidiaries of Constellation Enterprises.
Columbus Castings halted production last week and currently has 23 employees providing maintenance and security at the facility. A month ago there were 752 active employees.
Trevor Miller says Columbus Castings is “a gold mine” when all of the equipment is working right. MIller is one of the employees placed on temporary layoff status over the past few weeks. He is also hopeful that he will be back to work soon.
In the bankruptcy filing, the financial struggles of Columbus Castings are described as “largely the result of internal forces, including operational and equipment issues.”
The bankruptcy filing says in the third quarter of 2015, a furnace failure left the company unable to produce shipments for six weeks.
“As a result, CC lost approximately $12 million of firm shipment opportunities and incurred costs over $3 million of labor and expenses attributed to the failure.”
“The aged state of CC’s production equipment resulted in persistent challenges to produce and ship customer orders,”according to the bankruptcy filing. “During February and March of 2016′ CC required an additional $490,000 on average per week to support operations.”
After 31 years on the job, Fred Reinhardt retired in 2000 from Buckeye Steel, the previous owner of the facility. Reinhart says equipment issues have always been a problem. “The equipment was old and wore out when I was there, stuff breaking down and breaking down,” Reinhart says.
In a press release announcing the potential sale, Columbus Castings said, “if consummated, the buyer intends to preserve Columbus’ continuing ability to service its customer base as well as infuse significant capital into the Company.”What others are clicking on: