Dorsey Trailer Sale Close To Being Finalized

Unable to come up with a workable restructuring plan, officials with the bankrupt truck trailer maker Dorsey are close to selling the company off.

Yesterday they announced a petition had been filed with the U.S. Bankruptcy Court that certain assets will be purchased by Delaware-based Dorsey Acquisition Group LLC for $4 million. Dorsey Acquisition Group does not include any current or former officers, directors or insiders of the current company.
The agreement includes the sale of real estate at the company's Elba, Ala., facility; machinery, equipment, raw material and work-in-process inventory at the Alabama and Cartersville, Ga., locations; and the company's intellectual property, including its tradename.
An earlier petition filed with the bankruptcy court calls for the sale of the assets at Dillon, S.C., location to private investors for approximately $250,000.
Dorsey also reiterated that the proceeds from the sale of the company's assets, after payment of secured creditors and administrative claims, will not be sufficient to fully satisfy the claims of unsecured creditors -- nor will there be anything to distribute to shareholders.
They also announced that Marilyn R. Marks, chairman of the Board of Directors, resigned her position effective March 18.