Newsletter #068 (View other news stories)
FINANCIAL BACKER FOUND FOR CLARK MHC?
LEXINGTON, United States
Thursday, 1 Aug 2002
Clark Material Handling Company is awaiting court approval for a letter of intent signed on July 3 between it and a new capital backer.
Details of the move are scarce. Forkliftaction.com News's discussions with management revealed many staff were still unaware of the name of the backer.
But spokesman Kevin Reardon, who heads Clark's Korean operation, said it was "one of America's biggest and most successful private investment groups". An announcement is expected soon.
Clark entered Chapter 11 bankruptcy in April 2000 claiming it had USD349 million in assets and USD374 million in liabilities. Since then the company has moved production of its forklift lines from Kentucky to plants in Alabama, Germany and Korea.
Mr Reardon said speculation Clark Korea was being pressured to repay USD50 million in money borrowed from Korean banks to cover shipments not paid for by Clark USA was "not true".
"It's absolutely not true. Just like in a lot of other countries, companies can opt, for a fee, to have exported goods 'paid for' by banks, who assume the debt and are then paid by your customer," he said.
"Clark USA received a USD50 million shipment from Korea early in 2000, and filed its Chapter 11 application before the money had been repaid.
"Under the terms of the letter of intent between Clark USA and the investment partner, that USD50 million will be assumed by the financier."
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