GPX International seeks approval of proposed $10 million tire sale

By Alice Popovici

New York, Nov. 12 - GPX International Tire Corp. requested approval of a proposed $10 million tire asset sale to MITL Acquisition Co. LLC for $10 million, according to a Thursday filing with the U.S. Bankruptcy Court for the District of Massachusetts.

This transaction is a private sale, but GPX has filed a separate motion for authority to sell the tire assets by public auction, and setting establishing hearing dates and other deadlines for the proposed sale, according to the motion.

"The MITL offer provides the [company's] bankruptcy estate with a certain recovery for the solid tire assets," the motion states, adding that the company's primary secured creditors agree to the sale.

GPX agrees to pay MITL a fee of $350,000 if it terminates the agreement.

GPX makes specialty off-the-road tires for the agricultural, construction, materials handling and transportation industries and is based in Malden, Mass. The company filed for bankruptcy on Oct. 27. Its Chapter 11 case number is 09-20170.

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