American Remanufacturers granted court OK of $1.6 million asset sale

By Caroline Salls

Pittsburgh, Dec. 16 - American Remanufacturers, Inc. obtained approval of the sale of substantially all of its assets to Atsco Acquisition LLC for $1.6 million, according to a Friday filing with the U.S. Bankruptcy Court for the District of Delaware.

According to the filing, Dale Eaton is the sole member of Atsco Acquisition and is the former president of American Remanufacturers subsidiary Atsco Products Inc.

According to the asset sale request, the company's product revenues have lagged throughout 2005 because of shipment reductions brought on by customers reducing on-hand inventories; loss of the drive axle market share at two of its largest customers; loss of small brake caliper accounts to new, larger remanufacturers and small, established regional manufacturers and ever-increasing competition from lower-priced foreign imports.

The sale is slated to close Jan. 16.

American Remanufacturers, an Anaheim, Calif.-based producer of remanufactured automobile parts, filed for Chapter 11 bankruptcy on Nov. 8, but its case was converted to Chapter 7 on Nov. 18. Its case number is 05-20022.

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