LOS ANGELES, Aug 11, 2010 /PRNewswire/ – An affiliate of Aurora Capital Group (“Aurora”) has successfully reorganized and acquired a majority ownership position in Lexington Precision Corporation (“Lexington” or the “Company”).
Lexington manufactures tight-tolerance rubber components for use in medical, automotive, and industrial applications. Medical products include injection sites for intravenous feeding systems, plunger tips for syringes, and seals for minimally-invasive surgical instruments. Automotive products include seals for wiring systems and insulators for original-equipment and aftermarket ignition-wire-sets. The Company’s cutting-edge tooling technology and automated production processes support high-quality, low-cost manufacturing.
Steve Martinez, Managing Director of Aurora Resurgence, commented, “We are pleased to partner with Lexington’s management team to capitalize on the Company’s exceptional engineering, manufacturing and materials-formulation capabilities.”
Michael Lubin, Chief Executive Officer of Lexington, noted, “For many years, Lexington has been a company with great competitive strengths, but with an overly burdensome level of debt. The Aurora team recognized this and helped the Company utilize the reorganization process to create a strong balance sheet and substantial liquidity. We are now looking forward to working with Aurora to expand our business as we progress forward.”
Lexington emerged from Chapter 11 of the United States Bankruptcy Code on July 30, 2010. As part of Lexington’s successful reorganization effort, Aurora purchased public debt of the Company and then converted those securities into equity. Aurora also made a direct cash investment in Lexington to help fund the Company’s reorganization plan. Aurora is now the majority owner of the newly reorganized company.