Niigon Machines Ltd., based in Vaughan, Ont., Filed for bankruptcy on September 24 and all employees were immediately laid off.
Founded in 2008 by industrialist Robert Schad, Niigon went bankrupt with C $ 113.4 million (US $ 90.1 million) in liabilities and C $ 5.2 million (US $ 4.1 million) of assets.
Sources said Niigon closed after the failed sale of the company to Switzerland-based Benpac Holding AG.
Schad, a member of the Plastics Hall of Fame, founded the company as Athena Automation Ltd. and changed the name to Niigon in 2018. The name means “for the future” in native Ojibwa.
The company focused on customizable modular machines with a five-year warranty, to differentiate itself in the highly competitive injection molding machine market.
Niigon offered eight base models ranging from 30 to 600 metric tonnes, and company officials set out to build long-term relationships with suppliers to develop an efficient, integrated, demand-driven network to support assembles the assembly of automotive-style just-in-time machines. .
Now some of those vendors are creditors who are scheduled to meet Allan David Nackan, an appointed Licensed Insolvency Trustee, for the first time on October 15.
Nackan, who works for A. Farber & Partners Inc. in Toronto, has been appointed receiver and trustee in bankruptcy.
His colleague, Farber’s general manager, Paul Denton, sent a letter on September 24 to employees in Niigon informing them that the company was insolvent and that their benefits would cease on September 30.
Employees were also asked to return all company property by 4:30 p.m. on October 1.
Unpaid wages and vacation pay will be paid as quickly as possible, Denton also said, adding that any claim for severance would be considered an unsecured claim.
“It currently appears that there will be no money available from the sale and / or other realization of the assets of the company for distribution to the unsecured creditors of the company,” Denton said in the letter. “However, the payment of a discretionary bonus will be reassessed once the receiver has realized the assets of the company.”
Benpac Holding already owns another Canadian plastics machinery company. It purchased W. Amsler Equipment Inc. in Bolton, Ontario, in January 2020.
Amsler moved into a 40,000 square foot building owned by Niigon Machines in June 2021.
Sources said Plastics news that Benpac Holding was negotiating a deal to buy Niigon Machines, but when the deal collapsed, the owner of Niigon filed for bankruptcy.
Schad, who is 91, also launched Husky Injection Molding Systems, which he sold in 2007.