American Welding and Engineering LLC, a steel fabricating and machining firm in Cudahy with about 20 employees, has gone into receivership.
The company, which occupies a 70,000-square-foot plant at 6001 S. Pennsylvania Ave., filed for protection from creditors through receivership last week.
The firm is currently closed but may reopen, court-appointed receiver Michael S. Polsky said Tuesday. He said he is talking with customers and to at least six potential buyers of the company.
American Welding does work for heavy manufacturers, including the mining and railroad industries.
The company's present incarnation dates to 2006, but it appears to be linked to predecessor operations that go back to the mid-'50s. The Cudahy factory was built in 1965 by a company also called American Welding & Engineering.
The current firm owes $850,000 to Town Bank, Polsky said. The bank holds a lien on all of American Welding's assets, according to the receivership petition.
Besides the bank debt, the firm's other liabilities, as of October 31, totaled about $950,000, according to the petition.
Its assets, according to the petition, include accounts receivable and inventory with a book value totaling $1.3 million, plus equipment with an unknown value. Polsky said he is seeking updated information on the assets' worth.
Equipment, inventory and accounts receivable often bring less on the market than their book value.
Your link to the biggest stories in the suburbs delivered Thursday mornings.
Enter your e-mail address above and click "Sign Up Now!" to begin receiving your e-mail newsletter Get the Newsletter!
- South Shore police report: Sept. 3, 2015 issue
- South Shore police report: Aug. 27, 2015 issue
- South Shore police report: Aug. 20, 2015 issue
- South Shore police report: July 30, 2015 issue (1)
- South Shore police report: July 16, 2015 issue
- South Milwaukee schools raise money for heart research
- Area high school students recognized in Junior Achievement challenge
- South Shore NOW claims a second in state newspaper contest (3)
- Teff Gymnasium forever (11)
- Geocaching is a free, easy activity in any community (7)