Re: PST in Receivership

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Posted by on February 17, 2006 at 00:19:40:

In Reply to: PST in Receivership posted by RealityChecked on February 17, 2006 at 00:15:12:

A court-appointed receiver who has taken control of Pressed Steel Tank Co. is seeking a buyer for the company that will operate it as a going concern.

"We hope to get the company sold as soon as possible," said Michael Polsky, the receiver.

Financially troubled Pressed Steel, which operates a 266,000-square-foot plant at 1445 S. 66th St., West Allis, had planned to relocate its operations to the Tower Automotive Inc. complex on Milwaukee's north side, clearing the way for the city of West Allis to redevelop the property as part of the massive Six Points/Farmer's Market commercial, residential and retail project.

The city of West Allis purchased the Pressed Steel property in 2004 for $500,000 and had been working with the company to secure financing for the move to the Tower Automotive site, 3522 N. 35th St.

West Allis officials weren't immediately available for comment.

Relocating Pressed Steel's operations aren't "part of the plan at this time," Polsky said.

The value of Pressed Steel's assets is less than the company's liabilities, according to documents filed Feb. 8 in Milwaukee County Circuit Court.

The receiver believes the going concern value of Pressed Steel's assets is more than the liquidation value of the assets, states a document filed by Polsky. The going concern and liquidation values have yet to be determined, the document states.

Pressed Steel owes $145,000 to Prairie Business Credit Inc. and about $1.9 million to other creditors, according to the court filings.

Founded in 1902, Pressed Steel manufactures tanks for pressurized gases, such as scuba diving tanks and oxygen bottles for aircraft.

In August, the company filed a notice with the state Department of Workforce Development indicating it could be forced to lay off 37 employees because it had yet to secure all of the financing needed for its move from West Allis to Tower Automotive's manufacturing complex.

Pressed Steel Tank has said the move will cost about $5.3 million. The company had previously indicated that it could add 50 new jobs as a result of the relocation.

Relocating Pressed Steel's operations has been an ordeal for the city of West Allis, with the process getting drawn out over several years due to legal wrangling. Pressed Steel had considered relocating to the Tower site in 2000, but a dispute over financial assistance from the city of West Allis put an end to that plan.

In December 2002, West Allis city building inspectors issued an order to raze Pressed Steel's 100-year-old factory, citing 135 code violations. Pressed Steel went to court to block demolition and the city later purchased the property.

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