Denman trustee urges liquidation

Staff report

youngstown

The trustee for Denman Tire filed a motion Tuesday asking the U.S. Bankruptcy Court here to approve liquidation of about $1.35 million of the company’s assets.

The 91-year-old tire manufacturer filed for Chapter 7 bankruptcy in March, which involves liquidation of assets rather than reorganization. The Leavittsburg-based company shut down its plant operations in February.

Trustee Richard Zellers of Canfield, who was appointed to the bankruptcy case, recommended that Judge Kay Woods authorize the trustee to sell the Denman brand inventory, which includes finished goods manufactured by Denman and all of the company’s brands and trademarks, as well as the tires that Denman manufactured for InterCo Tire Corp.

The Denman brand inventory is worth about $1.3 million, according to the motion. The trustee has received $1,080,994 in offers for portions of the inventory.

The InterCo inventory will be sold to InterCo for between $275,000 and $300,000, according to the motion.

The motion states the value of the assets is depreciating and has a “limited resale market” and asks that the private sale of the assets be approved in a “time-sensitive” manner.