OVIEDO, Fla. – ROL Manufacturing, which has been operating under creditor protection in Canada under the Companies' Creditors Arrangement Act (CCAA) and Chapter 15 in the United States, is in negotiations and due diligence with potential buyers for various parts of the business.

ROL has received two court extensions to its CCAA stay of proceedings with the latest set to expire Sept. 18. Since April, the companies have been exploring sale proposals for the various business segments in which it operates, including exhaust hardware, engine gaskets and power steering hose. ROL reported that the negotiations and discussions have taken much longer than expected due to the complex nature and inter-dependence of all ROL facilities. Several parties have signed LOI with ROL and the process is being monitored by the court and secured creditors.

Officials at ROL said they expect to complete these transactions in the next few months and that the extension to the stay of proceedings until Sept. 18 should provide sufficient time for these transactions to be finalized.

“It was our initial intention to restructure the company and maintain our portfolio of multiple product lines. However, with tightening of the credit markets (especially for automotive companies), general economic conditions, and lower sales volumes in our OE business, it has become necessary to change course and seek outside buyers of our various business segments. Additionally, we are very enthusiastic about the future for our customers, employees and other stakeholders, as all of the engaged parties will be excellent stewards of our businesses,” said Ken Labelle, chief restructuring officer, ROL Manufacturing.