Axion International Holdings Inc. filed for chapter 11 bankruptcy protection yesterday with plans to sell its assets, the Wall Street Journal reported today. The Zanesville, Ohio-based company, which makes railroad ties, construction mats and other building materials, said in court papers that it has a bid lined up from one of its investors, which it aims to put to the test in an auction process. Investor Allen Kronstadt has agreed, through a credit bid, to forgive at least $3.2 million of the approximately $5.2 million he has lent Axion in exchange for its assets. The publicly traded company blamed its bankruptcy filing and need for a sale on liquidity issues and recurring operational losses. It has sought to right the ship by curtailing production, liquidating available inventory and seeking new investors, but these efforts have been “largely unsuccessful,” the company said in court papers.
