Crain News Service
DETROIT - The transition of the long-struggling auto supplier Peregrine Inc. into a smaller but more profitable venture will move another step forward next month when assets from its two closed plants in Livonia and Flint, Mich., go on the auction block.
In what organizers say is one of the country's larger industrial liquidations, more than 7,500 items - from injection-molding machines to robots to forklifts - will be sold at a three-day auction, March 9-11.
Industrial Assets Inc., a liquidator and asset-recovery company in Studio City, Calif., will handle the sale. It has valued the items at about $15 million.
Peregrine will use proceeds from the sale to pay down bank debt.
Industrial Assets President Steven Mattes said he expects more than 1,000 people representing hundreds of companies to attend the auction.
'An auction this size brings buyers from all over the world,' he told Crain's Detroit Business, a sister publication to Automotive News.
'It is, quite frankly, one of the largest auctions to take place. It's definitely one of the largest we've ever done.'
Equipment from the 1-million-square-foot Livonia plant will be auctioned March 9. The auction for the 2-million-square-foot Flint plant will be March 10-11, and maybe an additional day if needed.
The two plants have yet to be sold. Mattes said his company is negotiating to acquire the two properties.
I. William Cohen, a lawyer for Peregrine, said the company has signed a letter of intent to sell the Livonia property and expects to have a purchase agreement in a few months. He said talks about the Flint plant are continuing with a number of parties.
Peregrine expects to complete the last major part of its turnaround, the sale of its 1,100-employee plant in Windsor, Ontario, by the end of February.