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Reddi Brake Agrees to Sell Unit's Assets

May 01, 1997|(Bloomberg News)

Troubled Reddi Brake Supply Corp. of Ventura said it agreed to sell the operating assets of its main unit, Reddi Brake Supply Co., to Express Parts Warehouse Inc. for about $6.2 million in cash. Reddi Brake suspended operations at the unit's 84 auto-parts distribution shops on March 17 after it filed for Chapter 11 protection at the U.S. Bankruptcy Court in Santa Barbara. A court hearing on the agreement has been set for May 21. Closely held Express Parts, based in Raleigh, N.C., would get warehouse and headquarters assets, including inventory, accounts receivable, company-owned vehicles, fixtures, equipment and rights to the name Reddi Brake. The Reddi Brake unit will keep about $8 million in cash and notes. It has liabilities of about $14 million.

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