Atchison Casting to sell assets to KPS for $40 million

Chicago, Nov. 19 - Atchison Casting Corp. has agreed to sell its remaining assets to KPS Situations Fund LP. Atchison also has obtained a court order extending its 120-day exclusive period to file a reorganization plan by 90 days to March 1, 2004.

The 180-day exclusive period has been extended by 90 days to April 30, 2004. The order was filed in the U.S. Bankruptcy Court, Western District of Missouri.

Atchison agreed to sell its remaining operating assets out of bankruptcy to KPS, which will form a new company to purchase five business units of Atchison for a total of $40 million, according to a news release.

The proposed transaction remains subject to a number of conditions, including the completion of new labor agreements with Atchison's two trade unions, the United Steelworkers of America and Glass, Molders, Pottery, Plastics and Allied Workers International unions; and the completion of an environmental review.

KPS' bid will be the stalking horse in a bankruptcy auction. Atchison expects to complete the transaction in December.

Atchison sold all the assets of the Inverness Castings Group on Oct. 31.

Atchison Casting is an Atchison, Ky. producer of iron and steel.

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