 |
||||||||
 |
||||||||
|
||||||||
|
Uniroyal files for bankruptcy
By MARK ALBRIGHT, Times Staff Writer Uniroyal Technology Corp., a company that bet its future on a high-tech plant in Tampa, filed for protection from creditors in U.S. Bankruptcy Court in Delaware. The company said it had secured up to$15-million debtor-in-possession financing in hopes a bankruptcy judge will keep existing management in place while the company restructures its finances. The filing came after a tumultuous year in which Uniroyal racked up big losses, laid off more than half the staff at its 160-employee Tampa plant and was buffeted by creditors' liens and lawsuits. The Sarasota company listed $85.8-million in assets and $68.6-million in liabilities. One of the liens was filed by the IRS, which is auditing the company's use of a tax shelter dating back to 1999. The company recently disclosed a liquidity crisis severe enough that external auditors questioned whether Uniroyal could survive as "a going concern." The Chapter 11 bankruptcy filing Sunday "provides us with time to restructure our balance sheet while continuing to operate our business without interruption," said Howard R. Curd, Uniroyal chairman and chief executive. While Uniroyal traded as high as $7 a year ago, its stock closed Monday at 10 cents a share, down 5 cents. The filing is a far cry from Uniroyal's once bold plans. Best known for making Naugahyde brand coated fabric used in sofas, Uniroyal is trying to fashion a new future for itself as a maker of light-emitting diodes (LED). The computer chip, which is thinner than a human hair, is used in everything from auto tail lights to restaurant signs. One problem: Uniroyal is trying to sell U.S.-made chips to manufacturers in the Far East, a market where Asian giants dominate the LED industry. Another problem: a sale of a subsidiary fell through last winter. The company, which employs 400 people, also is trying to sell its Naugahyde unit. In the most recent quarter ended June 30, Uniroyal's revenues grew to $3.5-million, up from $1.2-million a year earlier. But the company's quarterly loss widened to $8.1-million, or 29 cents a share, compared with $6.1-million, or 23 cents a share. Uniroyal's financial problems have caused slowdowns in payment of employees' medical bills. Unlike most companies, Uniroyal is self-insured. The company Monday asked the bankruptcy judge to approve releasing cash to pay medical bills for its employees that were left unpaid before the bankruptcy filing. -- Mark Albright can be reached at albright@sptimes.com or (727) 893-8252.
 © 2006 • All Rights Reserved • Tampa Bay Times
490 First Avenue South • St. Petersburg, FL 33701 • 727-893-8111 
|
From the Times Business report
From the AP
|
