ValuePart Inc., which distributes replacement parts for earth-moving equipment, has filed for bankruptcy protection after a recent dip in sales, the Wall Street Journal reported today. Lawyers who put ValuePart’s operations into chapter 11 protection blamed an unexpected decrease in revenue collections in August. The company, which operates one of the equipment-distribution industry’s largest North American networks of warehouses, sells engine parts, rubber tracks, drivetrain and transmission items, hydraulic components and other products for heavy equipment made by Caterpillar, Bobcat and other manufacturers. The company’s sales have recovered but the trouble caused it to break terms of an August borrowing agreement that gave it access to $35 million. The default reduced the amount of money that the company can spend, according to court papers. The bankruptcy is meant to give ValuePart’s officials time to negotiate a new borrowing deal with lender ACF FinCo I LP without disrupting its business.
