Tier-1 supplier Metaldyne files for Chapter 11 bankruptcy too
The company has been restructuring its costs over the past year and a half, shedding $100 million in expenditures and reducing its debt. Still, as of the filing it had debt of $600 million on $2008 sales of $1.57 billion. Metaldyne's parent company, Asahi Tech Corp in Japan, helped the company lower its debt by about $400 million but has now walked away from further financial support.
There are two private equity firms interested in the company: Carlyle Group, which is looking to buy some of Metaldyne's chassis business, and RHJI, which is already a majority shareholder in Metaldyne's parent, Asahi. RHJI would throw about $100 million at the company and inject additional cash to run the business short term, as well as take on additional liabilities. Until (and if ever) a buyer is decided, Metaldyne is running on $18.5 million in debtor-in-possession financing from Deutsche Bank and customer funding.
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