New York-based Michelex Corp. said Wednesday it will sell its Salt Lake building in order to reduce its debt.
The announcement came as Michelex said it has signed a settlement agreement to end its litigation with Wells Fargo.
Michelex said it will continue to rent space so the manufacturing facility will continue to operate. The sale is expected to become final April 21 and will reduce Michelex debt by $2.5 million, it said. The first year's rent was part of the sale price.
Michelex will pay Wells Fargo more than $1 million by April 20 and $1.4 million by Aug. 31. Wells Fargo has agreed to forgive more than $633,000 of debt for any claims Michelex has against Wells Fargo.
Michelex Plastics is a manufacturer, importer and distributor of packaging and other specialty plastic products. It has manufacturing facilities and distribution points in New York and Salt Lake City.