Wood-Kote Manufacturing, Inc.
Regional manufacturer and marketer of specialty coatings such as stains and varnishes used for residential and industrial applications. Company distributes its products nationally under the WoodKote brand name through hardware and home decorating stores as well as directly to corporate buyers such as mobile home manufacturers and homebuilders. The Company's proprietary products are uniquely formulated to work equally well on wood, plastic and fiberglass surfaces.
In November 1992 a group of investors led by a Principal formed a new Company to purchase the assets of Spe-De-Way Products, Inc.
The Company has not performed to expectations. Inherited environmental land issues prevented early exit making it necessary to convert outstanding subordinated debt into equity. After the environmental issues were resolved fundamental macroeconomic trends developed reducing the Company's customer base. Based on these fundamental changes in the Company's prospects, the Principals made the decision to limit further investment and reduce their exposure.
Currently, management is exploring exit alternatives including sale of the Company or liquidating Company to realize material hidden underlying land value.