ESCO Forced Into Bankruptcy

Jason Sandefur

Electronic component and fastener distributor ESCO LLC was forced into Chapter 7 bankruptcy after an involuntary Chapter 11 petition was filed by one of its chief creditors in Federal District Court in Santa Ana, CA.\ San Francisco-based Tangent Fund Management II LLC filed a petition to block a foreclosure sale of ESCO by senior credit holder Signature Funding III. Signature is owed more than $7.8 million, while ESCO owes Tangent $2.1 million.
U.S. Bankruptcy Judge Robert W. Alberts signed an order on Jan. 19 sealing any potential settlement agreements between ESCO and unsecured creditor Tyco Electronics of Wilmington, DE, which is owed $2.3 million.
ESCO is a 40-year-old company that began as Electronic Supply Co. Lake Forest, CA-based ESCO operates branches in Dallas, Houston, Denver, Phoenix, San Diego, San Jose, CA, Seattle, and Portland, OR.
ESCO carries a range of fasteners from such notable companies as Bossard, Camcar, Chicago Rivet, ITW Shakeproof, Long-Lok Fasteners, N-D Industries, Nylok Corp. Southco Fasteners and Tinnerman. �2005 FastenerNews.com