The 18-year-old company, 1600 W. Cornell St., has been hurt by a slowdown in the airline industry, attorney Michael S. Polsky, who has been appointed as Tracer's receiver, said Monday. Polsky said he is still trying to determine if Tracer can be sold as a going business.
In a document filed in Milwaukee County Circuit Court, Polsky said Tracer's liabilities total $5.5 million. The debt includes $3.3 million owed to BMO Harris Bank, which holds a secured interest in substantially all of Tracer's assets, and $1.2 million in accounts payable.
The firm's assets carry a book value almost equal to the debt, according to the court filing, but their market value is significantly less. Further, the company has only about $1,000 in cash and $336,000 in other current assets, the filing shows.
Tracer had 10 employees before running into its current difficulties, but now has only three, Polsky said. William D. Morales, the company's president, declined to talk about the business situation.
Receiverships are state court proceedings similar to bankruptcy. Acting on behalf of creditors, a receiver tries to reap as much as possible from the assets of a financially troubled firm, sometimes selling them in total to a new owner who continues the operations, and sometimes auctioning them piecemeal.
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