Bankruptcy judge approves $8M sale of Jasper Rubber assets

JASPER, Ind. – A federal bankruptcy judge on Thursday approved the $8.03 million sale of Jasper Rubber Products to Jasper Acquisition Co. LLC, with Fort Wayne-based Press-Seal Corp. serving as guarantor. The decision makes way for the potential restart of operations at the Dubois County facility.

U.S. Bankruptcy Judge Christopher Lopez approved the transaction under Section 363 of the U.S. Bankruptcy Code. He found that it was the highest and best offer following a competitive marketing process and supported by sound business reasons presented in court.

“The market has spoken,” Lopez said during the hearing. “These assets were marketed, and the sale will be free and clear.”

The decision comes months after Cleveland-based First Brands Group LLC — Jasper Rubber’s parent company — informed employees that it would shut down operations and lay off roughly 330 workers in April as part of broader restructuring tied to its Chapter 11 bankruptcy case.

Prior to the shutdown, Jasper Rubber Products manufactured a variety of rubber, plastic, silicone, and thermoplastic products for the automotive industry.

First Brands requested approval to sell Jasper Rubber in late June. Court filings indicate Jasper Acquisition intends to begin operating the facility shortly after closing.

The sale includes four parcels of real estate, manufacturing equipment, inventory, raw materials, finished goods, permits, books and records, intellectual property, and the Jasper Rubber name.

Attorneys said the transaction does not include the immediate assumption or assignment of contracts. Instead, separate notices will be filed in the coming days as part of the post-closing process.

The hearing also partially resolved an ownership dispute involving three pieces of manufacturing equipment considered critical to restarting operations. Under an agreement approved by the parties, $200,000 of the sale proceeds will be held in escrow until the dispute is resolved. The matter may be resolved outside court or return for further proceedings, if needed.

The sale of Jasper Rubber is one of several asset sales First Brands has pursued during its restructuring. First Brands has also closed other facilities, including a Logansport site that resulted in 38 layoffs and a Warsaw facility that eliminated 262 positions.