Milwaukee-based Tramont Corp. announced today that it has filed a petition to reorganize under Chapter 128 of state statutes, which is similar to Chapter 11 of the federal bankruptcy law. The petition was filed this week in Milwaukee County Circuit Court.
Tramont is a manufacturer of diesel fuel day tanks, main tanks and sub base tanks for industrial engine generators.
Tramont Corp. President Jeff Christofferson said the Chapter 128 filing will not affect day-to-day operations of the company’s plant in Milwaukee. The company has 133 employees.
“It’s business as usual, and jobs will remain in place throughout the court process,” Christofferson said.
On Monday the company notified state and local officials that it planned to terminate all of its employees, cease operations and close its facilities as of May 5. However, today the company said that the structure of the Chapter 128 proceeding “technically results in the termination of all employees.”
Bids as a going concern will be solicited for the company as part of the Section 128 process with the winning bid to be determined by the court.
Court appointed receiver Michael Polsky said that he hopes to be able to announce an agreement to sell the company as a going concern and that proposed buyers will asked to agree to offer employment to substantially all of the company’s current employees and acquire substantially all of the assets of Tramont Corp. Any proposed sale is subject to court approval and higher or better bids.
“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 Tramont meets the economic turnaround on solid footing,” Christofferson said. “We are grateful for the support of our outstanding workers, customers and vendors. Our desire is for Tramont to remain a great corporate citizen and dedicated employer in Milwaukee, and to continuing the quality work we’ve done for nearly 40 years.”