VAUGHAN, Ont. – Brake industry sources are reporting the sudden closure of Util Group’s North American production operations on Aug. 4th and subsequent filing for bankruptcy in Canada and Mexico.
The BRAKE Report can confirm the bankruptcy filing in Canada — but not Mexico — though the industry sources said the company closed production facilities in both countries.
According to the industry sources, there was no advanced warning for the Util workforce who, the sources reported, were terminated without severance.
KSV Restructuring Inc. has been appointed as Licensed Insolvency Trustee (the “Trustee”) of Util by the Office of the Superintendent of Bankruptcy, according to a document produced by the trustee and obtained by TBR.
The document stated:
- The first meeting of creditors will occur on Aug. 25th.
- The company has $13,266,890.00 in assets.
- The company has $73,560.935 59 in debts.
It also lists 196 unsecured creditors owed the $73,560,935.59.
TBR’s queried both Util and KSV, but as of press time, had not received a response.
What the closure means to Util customers in North America is unknown currently. TBR is attempting to find out the impact on companies such as Nisshinbo and Akebono which have used Util fine blanks in their products.
