Officials of Plant and Machinery Inc.
auction company open sealed bids for Wheland Foundry. Click to enlarge.
A $1.5 million bid by Scott Probasco III that would have reopened Wheland Foundry was rejected early Tuesday afternoon.
A group of creditors of the bankrupt foundry decided instead to sell the property and equipment piece by piece.
Mayor Bob Corker, who had been working with the Probasco group, said, "We're very, very disappointed. We're sick."
Mayor Corker said, "We had this group willing to step forward and take a risk. It was a great opportunity to create jobs for hundreds of people."
He said, "I understand the responsibility of the trustees to the creditors, but the amount was so small - just pennies on the dollar - that we hoped they would have done the right thing."
Mayor Corker said keeping Wheland open would have provided new opportunities for past foundry vendors who are among the creditors.
He said he and his staff worked with the Probasco group until 11 p.m. Monday night and early Tuesday morning "on putting together some creative ideas to try to make this work."
Mr. Probasco, son of banker Scotty Probasco, had been working with former Wheland managers Ron Reese and Charles Armor on the revival plan for the foundry that went bankrupt last November and closed in February.
"The numbers worked. They would have had at least 400 workers within three years," a spokesperson said.
The bid was made through Mr. Probasco's Livingston Company, an investment firm. Mr. Probasco earlier was in the yarn business. His brother is Ben Probasco, who is in the development business with former Mayor Jon Kinsey.
Paul Mallchok, husband of Wheland official Lorie Mallchok, outbid Jimmy Hudson for the NARPark buildings on Alton Park Boulevard. The Malchok bid was in the name of Paul Mall Inc.
The Mallchok bid was just over $1 million, while Mr. Hudson bid $750,000.
The NARPark buildings are at 3017 Alton Park Blvd. One is on three acres and includes a 62,000 square foot metal building. The second is on 12 acres and had a 93,000 square foot metal building. Both buildings are currently leased. There is also a water tower at the site as well as some residential lots.
Still another winning local bid was from Gary Chazen of SFSI LLC. It was for several Wheland buildings Those include a stock building at 28th and Sydney for $41,333, the CE Tubes building for $251,133 and the administration building for $10,133.
A firm from Mexico bid $1 million for heavy foundry equipment at the Broad Street plant, and that was accepted.
The company is Cifunsa, which has several foundries in the vicinity of Saltillo, Mexico.
U.S. Holdings of Hialeh, Fla., paid $200,000 for other foundry equipment.
One plant at Warrenton, Ga., was sold to the Pine South Corporation of Warrenton and another plant there to Timberman, Inc., a Georgia firm.
An auction began Monday afternoon and was to continue several days on various Wheland equipment and furnishings. Tags have been placed on items ranging from fork lifts and jack hammers to desks, chairs, computers, printers, bookcases and wall paintings.
The sale is being conducted by Plant and Machinery Inc.
Wheland had some $140 million in debts when it closed.
An attempt was made earlier to find a buyer, but only the centrifuge plant was able to be sold.