YOUNGSTOWN, Ohio (May 10, 2010) — Classic and antique tire distributor Coker Tire Co. has bid $1.2 million to acquire some assets of bankrupt tire maker Denman Tire L.L.C., including the Denman brand name and other brands owned by Denman.
The U.S. Bankruptcy for the Northern District of Ohio in Youngstown has scheduled a hearing May 11 on Coker's bid and other matters.
Coker's bid, submitted April 28, is for more than 1,000 molds and associated manufacturing equipment, the Denman Tire brand name and all associated trademarks, service marks and trade names, and other miscellaneous assets, including customer lists, patents, manuals, drawings, etc.
Coker Tire President Corky Coker declined to comment on the matter until after his company's bid is accepted. Denman was one of Coker Tire's suppliers in the past.
The agreement provides that the assets be sold “free and clear of liens, claims and encumbrances,” in effect relieving Coker of any liabilities or obligations related to the assets being acquired.
Coker has paid a deposit of $250,000, which will be considered part of the final payment.
The trustee for Denman Tire, Richard Zellers, agreed not to solicit additional bids for the assets but said in case another party bids, its offer would have to be at least $50,000 greater than Coker's bid. If another party were to outbid Coker, the company would receive the deposit back, according to court documents.
Leavittsburg, Ohio-based Denman filed for bankruptcy March 17. The court already has ruled that Alliance Tire USA could retrieve tire molds and ancillary equipment for certain Galaxy-brand products Denman had been making. Pending still are claims by Tire Mart Inc. and Millersburg Tire Service for molds they say Denman has in its possession.