Atchison Casting obtains court approval for payment to lenders from asset sale proceeds

By Carlise Newman

Chicago, Dec. 12 - Atchison Casting Corp. has obtained court approval for an agreement between the company, Harris Trust and Savings Bank, and General Electric Capital Corp. to pay the lenders a portion of the proceeds from its $33.5 million sale to Blue Cast Inc.

General Electric, as agent, will receive $10.2 million in cash; 50% of the net note proceeds; and 30% of any distribution of net proceeds from an overbid in excess of $40 million. The remaining sales proceeds will be paid to Harris Bank, including 70% of any distribution of proceeds from an overbid in excess of $40 million.

Atchison obtained approval from the U.S. Bankruptcy Court for the Western District of Missouri.

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