Intermet Die Casting Assets Sold to Revstone
INTERMET DIE CASTING ASSETS SOLD TO REVSTONE – Revstone Industries, LLC purchased the assets of Intermet at auction last week for $11 million.
More about the fate of the bankrupt Intermet will be known after July 14 when a bankruptcy judge will approve the auction and enter the sale order at the hearing to be held in Wilmington, Del.
A single paragraph posting informed Intermet employees that the company’s assets were purchased by Revstone Industries LLC, a privately held company based in Paris, Ky., on Thursday.
Intermet Corp. had filed for Chapter 11 on Aug. 12. This was the second bankruptcy filing since Sept. 29, 2004, for Intermet.
According to The Deal Pipeline, this is Revstone’s second recent distressed acquisition as of late. In May, it purchased six plants from bankrupt auto parts maker Contech LLC which also supplied the Ford steering column. The privately held Contech was founded in 1950 and has six casting facilities in Michigan, Indiana and Tennessee. According to reports in the Detroit Free Press, several major customers of Contech filed an objection to the sale, including Ford Motor Co., which said it would not use Revstone as a replacement supplier.
Automotive industry publications said that the LLC is buying up high tech diecasting plants. Revstone’s parent company is Cerion LLC, a Plymouth, Mich. based company.
Intermet continues to operate with a skeleton workforce which once numbered more than 1,200 at its peak at the Monroe City, Palmyra and Hannibal plants. The Hannibal plant has since been sold to Spartan Light Metal Products.
Local Intermet officials returned calls but said they could not comment and referred all inquiries to Gordon Cole, a public relations consultant for the Cerion firm. Cole said it was premature to release any information and could not verify employee numbers.
Monroe City Mayor Neal Minor said neither he nor City Administrator Jim Burns had been able to make contact with anyone from Intermet. “I remain cautiously optimistic that the Monroe City Intermet facility will become a functioning part of what they are attempting to build.” Minor said.
“Unfortunately for the Intermet employees, they have gone from one unknown (What is going to come out of the bankruptcy proceedings?) to a new unknown (What are Revstone’s intentions for the Monroe City facility?) We are working hard to try and get some answers to that question.”
Source: Linda Geist, The Lake Gazette http://www.monroecity.net/
Tags: American Business, Business
July 9th, 2009 at 6:52 am
I don’t mind you using my article word-for-word, but please credit the paper.
(Admin: Look at the end of article)