CHARDON, Ohio (May 26, 2009)—Chardon Rubber Co. has voluntarily filed for protection under Chapter 11 of the Federal Bankruptcy Code and plans to sell parts or all of the firm.
The filing, made in the U.S. Bankruptcy Court for the Northern District of Ohio, will allow the firm to operate its core businesses while giving it time to restructure certain business segments and develop a debt restructuring plan, said Marian DeVoe, president and chief operation officer.
As part of its restructuring, the firm has entered into an agreement, subject to bankruptcy court approval, to sell certain assets and production lines to Wabtec Corp., a global provider of products and services for the rail and transit industry, she said. Wabtec's operations include rubber manufacturing facilities in Greensburg, Pa., and Strongsville, Ohio.
“We want to stress that our production facility is open, and we are working on our customers' orders and developing new business,” DeVoe said. “We are making every attempt to obtain court protection for our employee wages and benefits.”
Chardon Rubber also is exploring the sale of other product and production lines that the company has, as well as bids for the entire business itself.