SWC Industries LLC and 12 affiliated entities, operating four business segments (White Systems automated storage, CeraTek medical device sealing, Accu-Seal sealing equipment, and Ascent warehouse management software), filed for Chapter 11 protection on November 13, 2024 in the Northern District of California (Case No. 24-51721) with approximately 161 employees. The debtors carried approximately $52.1 million in total prepetition debt, including $26.5 million secured to WCMC and $26.2 million in unsecured SencorpWhite notes. Filing drivers included legacy asbestos and environmental liabilities, termination of revolving credit, and lender fatigue. The debtors obtained a $7.5 million DIP facility from JMB Capital Partners at 11% cash interest. Substantially all OpCo assets were sold to MSI Automate LLC for $15 million base plus up to $3 million earnout. The plan was confirmed May 7, 2025 and became effective May 27, 2025, establishing a Liquidating Trust (Heather Barlow, trustee) and an Asbestos Trust (IRC 468B). OpCo trade claims receive 50% recovery; legacy creditors share distributions from remaining assets.
