Secured lender to take over CPI Plastics

Profile and film extruder CPI Plastics Group Ltd.’s secured lender plans to take over the company´s assets, and CPI´s chief executive officer has stepped down.

The Mississauga, Ont.-based CPI announced on Jan. 7 that “it has been 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 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, according to the Jan. 7 statement.

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.