Kansas City Business Journal - August 18, 2006 - Weld Wheels, a Kansas City manufacturer of high-end custom wheels filed for Chapter 11 bankruptcy protection on Thursday.
As a result of the bankruptcy, Weld Wheel Industries Inc., which employs about 380 people, plans to sell its assets to American Racing Equipment Inc., a company based in Rancho Dominguez, Calif., that is in a similar line of work.
"Debtors believe that the sale of assets ... is in the best interest of debtors' estates, the creditors, their employees and the community," Weld Industries said in a court document filed Thursday. "The (asset purchase agreement) provides going concern value for debtors' assets and the opportunity for continued employment for most or all employees as well as the preservation of the business in Kansas City, Missouri, and at some or all of the distribution centers."
In court documents, the company listed total assets and total liabilities as each being $31.7 million as of June 30. Taylor Weld, listed as the company's president, signed the bankruptcy form, which was filed in the Bankruptcy Court of Western Missouri. The company hired lawyers from Bryan Cave LLP to represent it in bankruptcy proceedings.
The company is seeking court approval of sale procedures that would allow for the submission of competing bids, an auction and final sale hearing within six weeks, court records said.