The Lansing State Journal reports: Lansing’s largest and oldest manufacturer of building products is in bankruptcy court, and its new owner is trying to get out of it, saying it will be the first building-related company to file for Chapter 11 bankruptcy protection since a 2009 bankruptcy filing.
The bankruptcy petition filed by the company, Lander Group Inc., says the bankruptcy court is the first step toward restructuring and closing the business, and it’s seeking Chapter 11 protection in Michigan.
It said the company has no assets to pay off the $14.5 million it owes on its bonds.
The company’s new owner, the Detroit-based firm Malphite Builders Inc., is trying for Chapter 7 protection.
Lander, which had assets in Detroit, said in court papers that the bankruptcy petition could be filed in Michigan if a trustee approved it.
It also said it would need to find a new buyer and would need $15 million to do so.
Malphite has built some of the biggest structures in Michigan, including the iconic Wayne County Jail, the State Fairgrounds and the Michigan Stadium.
Malgidites CEO, Mike Daugherty, said he would need about $7.5 billion in cash to pay all of the debt, including $3.6 billion to pay its bondholders and the rest to the creditors.
Malplate, which makes high-end kitchen appliances, said it has about $1.8 billion in debt.
The court papers also say the bankruptcy could affect about 10,000 employees at Lander and Malphitys two factories, and about 1,200 at Malphites own facilities.
The Detroit News reports that the company said it is also planning to file a motion for an extension of time for creditors to file Chapter 11 claims, but it could be a while before it does so.