Company News
January 16, 2023
Bankruptcy Drama
Judge to rule on United Furniture’s bankruptcy
A federal judge will rule Wednesday on whether to approve the Chapter 11 bankruptcy protection motion of United Furniture Industries Inc.
Judge Selene Maddox conducted Friday a hearing on United’s Chapter 11 motion which would focus foremost on how the sale of its assets would be handled.
Maddox chose not to address the Chapter 7 liquidating motion filed Jan. 6 by Wells Fargo & Co., United’s largest creditor.
Maddox took Friday’s presentations “under advisement,” pending issuing a bench ruling at 4 p.m. Wednesday.
Maddox also chose to reset Wells Fargo’s motion for an interim bankruptcy trustee pending a ruling on the United motion.
The United motions are the company’s first formal legal response since it unexpectedly shut down on Nov. 22.
The shutdown immediately ended the employment and health insurance benefits of about 530 Triad workers and about 2,700 overall in three states.
Wells Fargo claims United’s motion “is an exercise in revisionist history” and only benefits the manufacturer’s majority owner, David Belford.
Wells Fargo said in a Dec. 30 court filing requesting the Chapter 7 liquidation of United that it is owed $99.21 million in secured debt.
However, the bank acknowledged it “estimates that any recoveries from liquidation of (United’s) collateral will result in a recovery equal to a fraction of this amount.”
United made promotional- to mid-priced upholstered furniture in the U.S. under its brand and the Lane Home Furnishings brand. The manufacturer also imported wooden bedroom and dining furniture.
Wells Fargo has pulled no punches in its court filings.
It claims United has performed post-shutdown “various instances of conduct found to establish a lack of integrity,” “gross mismanagement,” “ongoing incompetence,” and “conflicts of interest” involving Belford, and “lack of credibility and creditor confidence.”
Belford made the decision to shut down United.
United claims Wells Fargo’s motion for an interim trustee was filed “solely to hinder the company’s liquidation plan” and that “there is zero proof whatsoever of fraud, dishonesty or gross management” by United’s owner, board of directors or executive team.
United said it hired Kimberly Harper as chief financial officer on Dec. 1 to lead its attempt to “wind down the company … to preserve the company’s assets, prevent loss to the estate and develop a strategy to maximize the company’s value to all stakeholders.”
Those steps involve Harper negotiating with creditors and handling human resources issues. United cited the hiring of a chief restructuring officer and an outside general counsel.
As such, United claimed that the Wells Fargo motion for an interim trustee is unnecessary.
More salacious info here: https://nypost.com/2023/01/04/united-furniture-lenders-reveal-chaos-surrounding-2700-layoffs/
January 13, 2023
Covestro 2022 Preliminary Results
Covestro announces preliminary results for fiscal year 2022
In the course of preparing Covestro’s group accounts for fiscal year 2022, preliminary full-year financial figures deviate from capital market expectations, based on the average values of latest consensus estimates of financial analysts, published by Vara Research on January 12, 2023.
“Covestro’s business development last year was clearly impacted by the sharp rise in energy and raw material costs, high inflation and a weakening global economy,” says Dr. Markus Steilemann, CEO of Covestro. “Nevertheless, our products are part of the solution to the current crisis and essential for a sustainable and circular future.”
Dr. Thomas Toepfer, CFO of Covestro, adds: “The recessionary environment and the extraordinary depreciation, in particular as a result of the current difficult economic conditions in Europe, additionally weighed on the Group’s earnings. However, our record-high sales and clearly positive free operating cash flow also show that even in these difficult times we are succeeding in generating cash. Our balance sheet is very solid, so we are also prepared for a prolonged economic downturn.”
Covestro provides already today the following preliminary key financial data for fiscal year 2022:
- Preliminary sales amount to 17,968 million euros. The consensus expects this figure to be 17,999 million euros.
- Preliminary EBITDA amounts to approx. 1,610 million euros. The previous guidance expected EBITDA to be between 1,700 million euros and 1,800 million euros. The consensus expects this figure to be 1,679 million euros.
- Preliminary net income amounts to approx. –300 million euros. The consensus expects this figure to be 420 million euros. The Group’s net income is particularly burdened by extraordinary depreciation of non-current assets in the amount of approx. 470 million euros and by adjustments of deferred tax assets in the amount of approx. 250 million euros.
- Preliminary free operating cash flow (FOCF) amounts to approx. 130 million euros. The previous guidance expected FOCF to be between EUR 0 and EUR 100 million. The consensus expects this figure to be –39 million euros.
The Annual Report 2022 will be published on March 2, 2023.
January 13, 2023
General Coatings Names Lorenz President
PRESS RELEASE: January 10, 2023 (Fresno, California)
General Coatings Manufacturing Corporation
Laxmi “Lax” Gupta built one of the largest family-owned systems houses in the United States under
his leadership over his 50-year career in the polyurethanes industry. He ran a family and customer
centric business enterprise and focused on innovation through Research and Development leading
to high performance products produced under the strictest quality control procedures. He left an
enduring legacy which will be continued by his wife Urmila Gupta and his three children, Dr. Shalesh
Gupta, Dr. Anjula Gupta and Dr. Sandeep Gupta, who are actively involved in managing all of his
businesses. Many other family members and now the third generation, Lax’s grandchildren, have
started to enter the businesses as well.
The owners of General Coatings Manufacturing Corporation (GCMC) would like to announce
appointment of Will Lorenz as the new President of General Coatings Manufacturing Corporation.
Will Lorenz has been Vice President of – National Sales in Spray Foam Roofing & Tank Systems for
GCMC. He received a BA in Chemistry from the College of Wooster, Ohio and an MBA from the
University California Irvine in 1996.
Prior to joining GCMC, Lorenz worked at Amoco Chemicals, Mobay
Corporation, ICI Polyurethanes, Henry Company, and Arnco. He is part of
multiple industry organizations. He is President of RCMA, a board member
of SPFA, on the Spray Foam Contractors (SFC) Leadership Committee, on
the Spray Foam Manufacturer Government Affairs Committee, and a
member of NRCA, National Roof Contractors Association.
“I see my role is to bring the GCMC team together and unleash our
capabilities. We pursue our goals through embracing Lax’s keen
entrepreneurial spirit, bringing new energy saving roofing solutions, and
unparalleled personal commitment to our dedicated contractors.” –
Lorenz
January 12, 2023
Polycoat Management Changes
PRESS RELEASE: January 9, 2023 (Santa Fe Springs, California)
American Polymers Corp.
Polycoat Products (a Division of American Polymers)
Chemco Systems, Inc (a wholly owned company of American Polymers)
SuperSkinSystems (a Division of American Polymers)
Laxmi “Lax” Gupta built one of the largest family-owned systems houses in the United States under
his leadership over his 50-year career in the polyurethanes industry. He ran a family and customer
centric business enterprise and focused on innovation through Research and Development leading
to high performance products produced under the strictest quality control procedures. He left an
enduring legacy which will be continued by his wife Urmila Gupta and his three children, Dr. Shalesh
Gupta, Dr. Anjula Gupta and Dr. Sandeep Gupta, who are actively involved in managing all his
businesses. Many other family members and now the third generation, Lax’s grandchildren, have
started to enter the businesses as well.
The owners of American Polymers Corp. would like to announce appointments of Ashish
Dhuldhoya as the new President of Polycoat Products and of Dev Kumar and Dr. Mahesh Kotnis, as
Executive Vice Presidents of American Polymers Corp.
Executive Leadership Team consisting of the owners, Ashish Dhuldhoya, Dev Kumar, and Dr. Mahesh
Kotnis will oversee the management of all group companies, including American Polymers, under
the current ownership.
Ashish Dhuldhoya has proven to be an innovative and effective leader for the
past 35 years. Coming from India with a B.S. in Chemical Engineering from LD
College of Engineering, Ashish started as a plant operator at Polycoat in 1987.
In 1999, when Polycoat faced a pivotal moment, Ashish stepped in and
engineered a plan that put the company back on a growth path and has
continued to grow the company ever since. His strategic thinking and strong
leadership have made him an invaluable asset to American Polymers.
Dev Kumar holds a master’s degree in Industrial and Production Engineering
from Indian Institute of Technology, Roorkee. Prior to joining Polycoat
Products in 1998, Dev held various leadership roles in Engineers India Ltd
(formerly Bechtel India) for 28 years and was responsible for many large
complex projects involving grass root refineries, gas processing, fertilizer, and
naphtha cracker plants. At Polycoat, Dev was responsible for modernization
and expansion of Santa Fe Springs facility and then for strategic planning and
M&A.
Prior to joining American Polymers as Executive Vice President, Dr. Kotnis
worked in various senior leadership roles in multinational companies such as
Huntsman, Ciba Specialty Chemicals, and ICI Americas over the last 30 years. He
has a proven track record of building profitable businesses and high-performing
teams which have delivered consistent above-market growth in diverse
economic conditions. Dr. Kotnis holds a Ph.D. from the University of
Massachusetts at Amherst in Polymer Science & Engineering.
The ownership of American Polymers is committed to making investments in human and plant
assets to keep the aggressive growth trajectory of American Polymers through organic and inorganic
growth. We recently completed acquisitions and successful integrations of two new companies
namely, SuperSkinSystems and ChemCo Systems. We are proud to share that our team has
completed projects to set up new plants for manufacturing of aromatic and aliphatic polyesters in
Arlington, Texas. In addition, plans and implementation of a low-free TDI plant are underway, with
planned completion sometime in 2024.
January 12, 2023
Univar Discussions
Univar gains amid report about interest from PE firms Apollo, Platinum
Jan. 11, 2023 3:17 PM ETUnivar Solutions Inc. (UNVR)APO, BNTGFBy: Joshua Fineman, SA News Editor1 Comment
Univar Solutions Inc. (NYSE:UNVR) rose 3.4% amid a report that private equity firms including Apollo Global (APO) and Platinum Equity may be interested in a takeover of the US chemical distributor.
The PE firms are evaluating offers and potential buyers are holding discussions with Univar (UNVR) this month, according to traders, who cited a Bloomberg report. The talks are early and Univar hasn’t decided if it will sell itself.
The report comes after Brenntag (OTCPK:BNTGF) last Monday said it ended talks to acquire rival chemical distributor Univar (UNVR).
Univar indicated last Monday that it will continue talks relating to other indications of interest that have been received with respect to a potential transaction. Univar (UNVR) is said to have received takeover interest from multiple strategic buyers valuing the company at around $40/share, according to a Street Insider report at the time.
In late November activist Engine Capital, which disclosed it had a ~1% stake in Univar, said the company should start a competitive sales process that invites additional parties to bid for Univar besides Brenntag.
Engine Capital highlighted a letter it sent to Univar’s board in October and estimated that Univar (UNVR) may be worth $38-$44/share in a takeover.
Everchem Updates Archive 
Sign Up for Email Updates