Global Fastener News

Bahadrian: Ivaco Sale Benefits Stakeholders

September 01
00:00 2004

Bahadrian: Ivaco Sale Benefits Stakeholders

John Wolz

The sale of Ivaco Inc. to Heico Companies LLC “maximizes” benefits to customers, suppliers, creditors and employees, Ifastgroupe Inc. general manager Joseph Bahadrian wrote to suppliers.\
The sale of the bankrupt Canadian steelmaker includes the Ifastgroupe fastener businesses Infasco, Galvano, Ingersoll Fasteners and Infasco Nut.
“With respect to Ifastgroupe, we expect a substantial cash distribution for claims made against the company, although the precise amounts are not known yet,” Bahadrian wrote.
On August 19 the Ontario Superior Court of Justice approved the sale for about CAD$375 million (U.S.$285 million). The deal, which will leave shareholders empty handed, was first announced in early August. Ivaco has been restructuring since seeking court protection in September 2003.
“This is another significant step in the path to complete the restructuring of Ivaco,” commented chief restructuring officer Randall Benson. “We are pleased that the Court has endorsed this sale transaction and we look forward to completing the remaining requirements to close as quickly as possible.”
The sale is expected to close during the fourth quarter of 2004. The company warned that it does not expect shareholders to “receive any value for their shares as a result of these transactions.”
In a letter to customers, CEO Gordon Silverman said Ivaco has made “great progress in the last 10 months shedding unprofitable products and operations, improving productivity and focusing our businesses.”
Silverman declared Ivaco is “now healthier and more viable.”
Second quarter figures from the Canadian steelmaker support Silverman”s claim. Sales climbed 40% during the quarter, while profit rebounded to nearly CAD $18 million.
“Heico has indicated its intention to continue operations with the current management team, including its direction and philosophy,” Bahadrian wrote to suppliers.
In addition to Bahadrian, fastener executives are: Mortie Chaikelson, Infasco vice president and legal counsel; Robert Ivanier, Infasco vice president for sales and distribution; Tom Perlus, vice president of Marieville operations for Infasco and Sivaco; Charlie Birch, Ingersoll Fasteners general manager; Ed Duchin, Ingersoll sales manager; and John Clifford, Infasco Nut general manager.
Heico is a Chicago-based holding company controlled by financier Michael Heisley. Heisley is best known in Canada as the man who bought the Vancouver Grizzlies in 2000 for about CAD $160 million, then relocated the NBA team to Memphis the next year. �2004

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