Auto-parts maker Techniplas LLC filed for bankruptcy with plans to hand ownership to bondholders that include HIG Capital LLC, saying Covid-19 has further hurt its struggling business, WSJ Pro Bankruptcy reported. Techniplas, which has roots in U.S. plastics manufacturing dating back to 1941, filed for chapter 11 on Wednesday, the same day that a forbearance agreement with one of its lenders expired, according to papers filed in U.S. Bankruptcy Court in Wilmington, Del. The bankruptcy was prompted by several factors that have contributed to a drop in the company’s earnings and liquidity, the latest of which is a pandemic that has punished the global economy, Peter Smidt, co-chief restructuring officer, said in a court filing. Techniplas has 445 active employees and 271 furloughed employees. Before filing for bankruptcy, the Nashotah, Wis.-based company cut 190 jobs at facilities in Iowa and Alabama. The company’s automotive products include fluid and air-control parts. It also makes such nonautomotive items as power utility and electrical components and water filtration goods. Last year, it recorded sales of $475 million and a net loss of $21 million. Nearly all of the private company’s equity is owned by founder George Votis.
