Milwaukee Forge, a metal fabricator located at 1532 E. Oklahoma Ave. in Milwaukee, has entered receivership after filing a Chapter 128 petition in Milwaukee County Circuit Court Tuesday.
Entering receivership is a “strategic business move” to position the company for “new growth,” according to a Wednesday announcement from Milwaukee Forge’s legal counsel.
“While the past several years have been difficult for everyone in the manufacturing industry, we are deeply committed to doing everything we can to ensure Milwaukee Forge meets the economic turnaround on solid footing,” said
Dave Mesick, president and CEO of Milwaukee Forge. “We are grateful for the support of our outstanding workers, customers, lender and vendors. Our desire is to remain a great corporate citizen and dedicated employer in Milwaukee, and to continuing the quality work we’ve done for nearly a century.”
A Chapter 128 filing is similar to a Chapter 11 filing under federal bankruptcy law, but it allows for a more streamlined process.
Michael Polsky, a lawyer at Milwaukee-based
Beck, Chaet, Bamberger & Polsky, S.C., will be the court appointed receiver at Milwaukee Forge's request. The company’s lender has agreed to the process.
Milwaukee Forge will continue operating as usual and none of its 80 employees have been laid off.
Milwaukee Forge and Polsky’s financial advisors, who will oversee the sale process, have been in discussions with several parties interested in acquiring the company. Any proposed sale is subject to court approval and higher or better bids, according to Polsky.
“It’s business as usual," Mesick said. "All jobs will remain in place and customer orders will continue to be filled throughout the court supervised process."
Milwaukee Forge also filed for Chapter 128 protection in February of 2010. The company’s assets were purchased by an investor group led by Mesick.
