CPI Plastics of Canada Seeks Bankruptcy Blaming U.S. Recession
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CPI Plastics Group Ltd., the plastics maker based in Mississauga, Ontario, sought bankruptcy protection in Canada and the U.S., blaming the deepening U.S. recession and rising prices of raw materials, Bloomberg reported. The 37-year-old firm and four of its units were forced into bankruptcy by the Bank of Montreal after CPI’s $3.4 million loss in the fourth quarter violated loan agreements with the bank. CPI, which has a facility in Pleasant Prairie, Wisconsin, has debt of about $54.4 million and estimated assets of less than $100 million, court papers show. Chapter 15 lets foreign companies reorganize outside the U.S. while protecting them from U.S. lawsuits and creditor claims. CPI asked the court for an order requiring U.S. creditors be governed by its Canadian reorganization and blocking them from filing lawsuits. The company, with 500 employees at five facilities, makes products including decorative trim and functional parts for automakers and appliance makers, according to its Web site. Read more.