HATS OFF TO RE-EMERGENT CLARK MHC

News Story
- 30 Jan 2003 ( #92 ) - LEXINGTON, United States
2 min read
Young An Hat Company Ltd (YAHC) of Buchsan, South Korea, will acquire Clark Material Handling Company's assets, and about USD10 million in debt, for USD7.5 million tomorrow.

YAHC was the successful bidder in an auction for Clark's assets.

The transaction ends Clark's bankruptcy, which it filed under Chapter 11 of the US Bankruptcy Code in April 2000, listing USD349 million in assets and USD374 million in debts.

YAHC plans to operate Clark by basing its manufacturing operation in Korea and the sales office and headquarters in Lexington, Kentucky, USA.

Clark chief executive Kevin Reardon told Forkliftaction.com that an unsuccessful bidder, a New York equity bank, had planned to dismantle the company.

Five companies submitted bids and deposits by the January 22 deadline, but three dropped out before the auction in Wilmington, Delaware, USA, on January 24. "One group couldn't show an ability to close the deal," Mr Reardon said.

The US Bankruptcy Court in Kansas City, Missouri, USA, authorised YAHC to proceed with its bid on January 27. YAHC chairman, chief executive and founder Sung Hak Baik was present throughout the proceedings, said Mr Reardon, who will remain as Clark chief executive under the new ownership.

Mr Reardon first became acquainted with YAHC through a Korean financial group that had worked to restructure Clark's debt in Korea during the company's bankruptcy. Mr Reardon was president of Clark's Korean operations for more than four years.

When a buyout deal with Sun Capital Partners Inc collapsed on December 23, a call to YAHC sparked interest. "We got on a plane on December 27 and spent a week with them," Mr Reardon said.

YAHC's bid provides USD5 million to pay debtor-in-possession financing, USD1.5 million for professional and legal services and USD1 million for administrative claims.

At the end of the bankruptcy, Clark had total debt of about USD252 million, including USD150 million owed to bond holders, USD50 million to trade creditors and the remainder in other claims. It is unclear what will happen to these debts under the new ownership.

Mr Reardon said Clark booked sales of USD220 million last year and projected a 20 percent sales increase this year, with Clark's parts business returning to normal.

YAHC, formed in 1959, is the world's largest hat manufacturer, and has diversified holdings including hotels, farm equipment, a supermarket chain and multiple bus manufacturing businesses. The company employs more than 4000 people and has projected 2003 sales of USD750 million.

Clark has built more than one million forklifts over 85 years, selling multiple product lines through more than 550 dealers worldwide.
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Previously about:
Clark names two new US distributors News Story - 22 May 2025 - Dallas, TX, United States - 1 min read
Briefs News Story - 1 May 2025 - 1 min read
Clark releases pallet truck News Story - 5 Sep 2024 - Duisburg, Germany - 2 min read
CLARK BUYOUT DEAL COLLAPSES, AUCTION TOMORROW News Story - 23 Jan 2003 - LEXINGTON, United States - 2 min read
CLARK, INVESTOR AGREE ON ASSET SALE News Story - 18 Dec 2002 - LEXINGTON, United States - 1 min read
LID LIFTED ON CLARK MHC'S CH 11 EXIT STRATEGY News Story - 8 Aug 2002 - LEXINGTON, United States - 2 min read
Clark returns headquarters to US News Story - 17 Apr 2025 - Dallas, TX, United States - 1 min read
Clark moves global HQ back to US News Story - 27 Jun 2024 - Dallas, TX, United States - 1 min read
Clark bounces back with 4th profitable quarter News Story - 22 Jul 2004 - LEXINGTON, KY, United States - 1 min read
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As June comes to a close, the month when our sector recognises National Forklift Safety Day , the United Kingdom’s Association of Industrial Truck Trainers (AITT) has issued a timely reminder of the need to ensure any staff training is fully accredited... Continue reading

Are you recruiting? Find your ideal candidate among a diverse range of materials handling professionals:

Forkliftaction's JOB MARKET

Are you recruiting? Find your ideal candidate among a diverse range of materials handling professionals:

Forkliftaction's JOB MARKET

Find the right machine for your business with F. Uchiyama, exporter and wholesaler of used forklifts and construction machinery. With 100 years of experience in the trade, you can leave the export procedures to us!
FOR SALE:
2016 TCM FD115-3 rough terrain forklift 
1999 Hitachi HX99B telescopic boom 
2017 Unicarriers counterbalanced forklift 

Find more machines here | Contact us with enquiries