DAILY NEWS Jan 26, 2009 11:56 AM - 0 comments

CPI Plastics for sale

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Weeks after being placed under receivership, profile and film extruder CPI Plastics Group Ltd. is up for sale.

The Mississauga, Ont.-based company, currently being protected from creditors, will continue to operate while a buyer is being sought.

CPI was placed into receivership Jan. 8 after a petition by its main secured lender, Bank of Montreal.

According to a Jan. 7 press release, the company was "unable to withstand the ravages of the current economic crisis and has been unable to gain the support of its secured lender to restructure [its] financial affairs."

The company also announced on Jan. 7 that Peter F. Clark resigned as CEO and as a director of CPI. In addition to Clark, all of CPI's other directors have also resigned or indicated their intention to resign.

Back in November, CPI announced plans for a financial restructuring, blaming a slowdown in the housing market, which was affecting sales of its hot tub components, railing and decking, for recent financial problems.



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