Atchison Casting files for bankruptcy protection, will sell assets

By Carlise Newman

Chicago, Aug. 4 - Atchison Casting Corp. has it and its U.S. subsidiaries have filed a voluntary petition for reorganization in the U.S. Bankruptcy Court in the Western District of Missouri, and has obtained a $7.5 million debtor-in-possession financing facility with Harris Trust & Savings Bank as agent for the lending group.

Atchison intends to sell its remaining businesses and assets as a going concern for the highest value. he company said is unable to predict how much cash will be generated from the sales or how much money will be available to pay unsecured creditors.

At this time it appears unlikely that any funds will be left for stockholders, Atchison said in a news release.

Subsidiary G&C Foundry Co. will not be included in the filing as all of its assets are expected to be sold within 30 days. Atchison's Canadian and U.K. operations have not been included in any bankruptcy filings and are operating as usual.

"After our long struggle to survive against the backdrop of the recession in the manufacturing sector, too much debt and related costs, and closures and sales of unprofitable operations, among other things, this filing should enable our core operations to continue to operate while we offer them for sale, which provides the best opportunity for our employees, customers, vendors and creditors going forward. To continue to burden our core operations with these costs would ultimately lead to their deterioration, thereby jeopardizing their future," said Kevin McDermed, chief financial officer.

ACC is an Atchison, Ky.-based steelmaker.

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