Buyer being sought for UFE, Inc.UFE, Inc. in Osceola is facing an uncertain future. The injection molding company entered receivership under an Aug. 6 federal judge's order.
UFE, Inc. in Osceola is facing an uncertain future.
The injection molding company entered receivership under an Aug. 6 federal judge's order. The company continues to operate and a possible new owner is being sought.
UFE’s other injection molding facilities in El Paso, Texas, Mexico and Singapore also continue to operate as the financial situation is worked out.
UFE and its owner Catalina Precision Products, Inc. are reportedly in default on multiple loans totaling more than $7 million. According to court records, the company's executives and every member of its board of directors resigned several weeks ago. The companies reported to the bank that they had ceased operations and would liquidate their assets.
But a receiver was appointed to direct the liquidation instead. The court-appointed receiver, Conway Mackenzie Inc., is now apparently working to find a potential buyer, rather than liquidate the company.
State Rep. Ann Hraychuck (D-Balsam Lake) said she is working with local officials to keep UFE operating and providing employment in Osceola. She said she is optimistic that Conway MacKenzie will pull together a sale.
"They have assured me that their number one priority is to preserve jobs in the community by selling the company as an ongoing concern," she said. "Given UFE's excellent reputation as a supplier of plastic parts to the medical device industry, CM is confident, that with the right management, UFE will not only survive, but grow and prosper."
Aaron Olver, secretary of the Wisconsin Department of Commerce, traveled to Osceola to meet with local officials to discuss what steps can be taken to address the UFE situation. Hraychuck said state officials will work with Osceola's "Vision 600" economic development organization to bring about a positive result.
"Working together we can make a difference and turn this opportunity into a brighter future," Hraychuck said.
In an effort to diversify, Catalina Precision Products bought UFE in 2008. In 2009, the company closed its Stillwater, Minn., plant and consolidated operations in Osceola, Wis.