New Products Corporation Was Highest Bidder to Purchase Modern
Plastics Mortgage From Bank of America
BENTON HARBOR, MI, Mar 05, 2013 (MARKETWIRE via COMTEX) --
Copyright 2013 Marketwire, Inc., All rights reserved.
New Products Corporation (NPC) revealed today that it was the
highest bidder on a mortgage loan for Modern Plastics Corporation, a
neighboring manufacturing company that went out of business and is
now in bankruptcy. Bank of America, which owns the Modern Plastics
mortgage, with an unpaid balance of approximately $1.2 million,
recently offered it for sale through a sealed bid process. The Modern
Plastics property is located on North Shore Drive in Benton Harbor,
directly across the street from New Products.
"As the highest bidder, we've committed New Products to a substantial
investment that can help protect our own operations, as well as
create new opportunities that will grow jobs in our community," said
Cheryl Miller, NPC president and CEO.
NPC and Cleanup Modern Plastics, LLC, a new entity created by St.
Joseph attorney Mark Miller in February, were the two bidders in the
second round of bidding to purchase the mortgage from Bank of
America. Mr. Miller is an attorney that has represented Harbor
Shores, which has previously expressed interest in purchasing the
Modern Plastics property.
The first offer to purchase resulted in a tie, requiring a second
round with a minimum bid of $75,000. The second round of bids was
opened on Monday, March 4, 2013, and NPC was revealed to be the
highest bidder.
Miller noted that separate from the mortgage sale, Modern Plastics'
real estate and all of its buildings are pending a sale by the
bankruptcy trustee of Modern Plastics, subject to the Bank of America
mortgage. There is a hearing scheduled in Bankruptcy Court in
Kalamazoo on March 6, 2013. When NPC learned that an offer of only
$25,000 to purchase Modern Plastics' facilities and property was made
by a company formed by an attorney from the law firm of Dickinson
Wright, which also represents Whirlpool and Harbor Shores, NPC made a
counter offer. The other interested purchaser has responded with its
own counter-offer. The issue of the terms of the sale of the Modern
Plastics property, and the successful buyer will be determined by the
Bankruptcy Court.
"We don't know the outcome of the real estate sale," added Miller.
"Securing the mortgage note, however, is an important first step to
protecting our company from encirclement by developers of Harbor
Shores."
For more information about New Products Corporation, visit
www.newproductscorp.com. For details and maps that describe Harbor
Shores' development around NPC, visit www.WhatIsTheBigSqueeze.com.
SOURCE: New Products Corporation
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