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A Second Chance for Jasper Rubber
A Fort Wayne-based company is asking a federal bankruptcy court to approve its purchase of
Jasper Rubber from First Brands Group, according to documents filed this week.
As reported by WITZ last week, former Jasper Rubber owner First Brands is now in bankruptcy
litigation as their former executives face multiple counts of fraud. First Brands has been seeking
to liquidate their assets in order to gain capital for further litigation. Information has recently
revealed that a multi-million deal may be in the works to purchase Jasper Rubber. While these
reports are preliminary, and WITZ has reached out for confirmation, it appears that the long-
time Jasper manufacturer may be back in business.
On Wednesday, First Brands Group submitted a motion seeking authorization to sell its Jasper
Rubber Products business to Jasper Acquisition Co., LLC, an Indiana limited liability company.
Press-Seal Corporation, headquartered in Fort Wayne, will serve as the guarantor for the
purchase. According to court records, the company initially expressed interest in Jasper Rubber
as early as March when they submitted a non-binding proposal.
Daily operations came to an end for the Jasper manufacturer in March, when First Brands
unexpectedly closed multiple businesses in their portfolio and declared bankruptcy. The
proposed transaction is valued at just over $8 million. Under the agreement, the buyer would
pay cash and assume certain liabilities while acquiring assets associated with the Jasper
operation. Assets would include the permits, contracts, manufacturing facility and real estate,
equipment, inventory, and intellectual property. Jasper Acquisition Co. would also acquire the
Jasper Rubber name and related manufacturing processes. First Brands would retain cash,
accounts receivable, and any assets not directly connected to the Jasper business.
In the court filing, the company states that the prospective buyer plans to resume production
as quickly as possible, noting that an expedited reopening would improve the chances of
bringing former employees back to work and retaining customer relationships.
Exactly what the acquisition means for the future of Jasper Rubber still remains to be seen. It is,
however, an acknowledgement that the local business holds value not only in its reputation,
but also in its property, holdings, and workforce. A hearing on the proposed sale is scheduled
for 11 a.m. Central on July 2 before U.S. Bankruptcy Judge Christopher Lopez in Houston. Any
objections to the transaction must be filed by 4 p.m. Central time on July 1.
For more information on these and other updates, visit www.witzamfm.com/news
- Drew Hasselbring