The US federal bankruptcy court overseeing the reorganization of Contech LLC. is studying a petition to sell the group’s six metalcasting operations to a private-equity group, Revstone Industries LLC.
According to reports, Revstone has offered a reported US$14 million for the operations. The offer is the only bid exceeding the plants’ liquidation value.
Since March, Michigan-based Contech LLC has been seeking for buyers for its six diecasting plants in the country. It filed for bankruptcy protection in January in Detroit after it had been acquired in 2007 by Marathon Asset Management LLC. It produces and machines aluminum and magnesium diecastings, steel forgings, and fabricates tubular steel products and has nine US plants. The six casting facilities are in Michigan, Indiana and Tennessee.
Contech also is looking to divest Contech Operating UK Ltd, in Welshpool, Wales, to Hicorp Ltd for about US$4 million. The Chapter 11 bankruptcy filing does not cover Contech UK.