Metaldyne Corp. announced that the company and its U.S. subsidiaries filed for Chapter 11 bankruptcy. The move, which was made to address liquidity needs and facilitate a restructuring, is a result of faltering North American vehicle sales and production. It does not include the company’s non-U.S. operations or Asahi Tec Corp., its parent company. In connection with the filing, Plymouth, Mich.-based Metaldyne entered into two non-binding letters of intent to sell a majority of its assets. RJH International (RJHI) and The Carlyle Group have submitted letters of intent to purchase different portions of Metaldyne assets. Metaldyne has been advised that Asahi Tec, which purchased the company in 2007, will now focus on its Japanese businesses and will no longer continue its economic support for Metaldyne.
RHJI, which owns a majority stake in Asahi Tec, has proposed purchasing certain North American and European assets of Metaldyne’s Sintered Products and other business units. Metaldyne has seven PM plants in the U.S., Mexico, Brazil, China and Spain. Carlyle has proposed a purchase of certain of Metaldyne's Chassis business assets in the U.S., Mexico and Spain. Metaldyne is a leading global designer and supplier of metal-based components, assemblies and modules for transportation-related powertrain and chassis applications to the auto industry.
Metaldyne Files for Bankruptcy
June 1, 2009