Rich Michaelson Magaliff, LLP Rich Michaelson Magaliff, LLP
Speak with one of our attorneys today.
TF 877.373.6811
NY 646.453.7851
Main Navigation
Real World Solutions To Real World Challenges

R3M has been voted a Best Law Firm by US News & World Report and Best Lawyers

Best Lawyers | Best Law Firms | U.S.News & World Report | 2018 Best Lawyers | Best Law Firms | U.S.News & World Report | 2019

Get Answers

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Wire mesh company plans to sell, hopes for brighter future

When we hear about a company being bought by another entity, we often see it as a negative step. But while change can be difficult for any business, this type of change may be a wonderful opportunity for a New York company to grow and improve.

That's exactly what the CEO of New York Wire is saying about the company's recent move to sell. The 127-year-old company that makes wire mesh products has agreed to sell to an Alabama-based company for $8.8 million. The sale was made as part of a bankruptcy auction. The minimum bid was set at $8.1 million by the court.

The CEO explained that the company's financial difficulties started during the 2007-2009 recession. Things got even worse after an overseas manufacturing facility ended up having expensive and long start-up issues. These problems, as well as a few others, caused the company to default on some obligations. The bankruptcy filing shows the company has more than $12 million in outstanding secured debt, as well as more than $3 million in other obligations.

The sale won't lead to many changes in day-to-day operations, but there will be some improvements for the 240 employees, according to the CEO. The CEO has a very positive outlook on the sale. He says the company that is purchasing New York Wire is a family-owned business with a great reputation. He also points out that the sale price "speaks to the value of the company."

While some may see Chapter 11 bankruptcy proceedings in a negative light, a company may actually come out stronger in the end.

No Comments

Leave a comment
Comment Information