Metaldyne sets bid procedure for proposed $100 million powertrain sale

By Jennifer Lanning Drey

Portland, Ore., June 16 - Metaldyne Corp. requested court approval of the bidding procedures related to the proposed sale of its powertrain group, according to a Tuesday filing with the U.S. Bankruptcy Court for the Southern District of New York.

The proposed purchaser is RHJ International SA, which currently holds approximately 60.1% of the outstanding capital stock of Metaldyne's indirect parent, Asahi Tec.

The transaction is valued at $100 million, including up to $25 million in cash, a new $50 million secured note and the exchange of an existing €15 million demand note issued by Metaldyne GmbH for a term loan to RHJI's newly formed acquisition subsidiary, according to a Metaldyne news release.

In addition, RHJI has agreed to inject additional cash into the newly formed entity to fund future working capital needs.

Bid procedures

Under the proposed bid procedures, Metaldyne will pay RHJ a $2 million breakup fee and reimburse up to $750,000 of its expenses if it selects another bid.

Competing bids are due by 5 p.m. ET on July 23.

If any competing bids are received, an auction will be held July 24.

A hearing on the bid procedures is scheduled for June 24, and the sale hearing is scheduled for July 27.

Metaldyne, a Plymouth, Mich.-based maker of metal-based components, assemblies and modules for transportation-related powertrain and chassis applications, filed for bankruptcy on May 27. The Chapter 11 case number is 09-13412.

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