Contech Entities Seek Conversion to Chapter 7
On Wednesday, Contech U.S., LLC, MAG Contech, LLC and Contech, LLC requested the conversion of their chapter 11 bankruptcy cases to chapter 7. The three companies voluntarily filed for chapter 11 protection on January 30, 2009 in the United States Bankruptcy Court for the Eastern District of Michigan. The companies were a leading "light metals die casting and machining company with proprietary metal-forming process technologies which enabled them to provide automotive industry customers with advanced product solutions."
The companies were organized into two business units - the Castings Group and the Steel Products Group. During the bankruptcy cases, Contech has sold substantially all of the assets of both business units, as well as all of the shares of Contech U.K., a non-debtor affiliate. A facility located in Albemarle, North Carolina was excluded from the Steel Products Group asset sale, but has been sold pursuant to a separate court order. The final sale closed on June 30, 2009.
In addition to having completed its most significant asset sales, Contech's debtor-in-possession financing facility matures on July 10, 2009. While the DIP facility maturity has been extended on two prior occasions (it was initially due to mature on April 30, 2009), the motion reports that the lenders are unwilling to provide any further extension. Therefore, Contech will have no means to fund the chapter 11 cases past July 10th.
Download copies of every document filed in this case and the bankruptcy cases of over 600 other major corporations using netDockets. Sign up now for a free trial account and $100 of free research.
The companies were organized into two business units - the Castings Group and the Steel Products Group. During the bankruptcy cases, Contech has sold substantially all of the assets of both business units, as well as all of the shares of Contech U.K., a non-debtor affiliate. A facility located in Albemarle, North Carolina was excluded from the Steel Products Group asset sale, but has been sold pursuant to a separate court order. The final sale closed on June 30, 2009.
In addition to having completed its most significant asset sales, Contech's debtor-in-possession financing facility matures on July 10, 2009. While the DIP facility maturity has been extended on two prior occasions (it was initially due to mature on April 30, 2009), the motion reports that the lenders are unwilling to provide any further extension. Therefore, Contech will have no means to fund the chapter 11 cases past July 10th.
Download copies of every document filed in this case and the bankruptcy cases of over 600 other major corporations using netDockets. Sign up now for a free trial account and $100 of free research.
blog comments powered by Disqus
