Metaldyne's motion for final DIP loan approval taken under advisement

By Jennifer Lanning Drey

Portland, Ore., June 22 - Metaldyne Corp.'s motion for final approval of its proposed $18.5 million debtor-in-possession facility from Deutsche Bank AG, New York was taken under advisement, according to a source familiar with the case.

The decision to postpone a final decision was made by the U.S. Bankruptcy Court for the Southern District of New York following a Monday hearing.

As previously reported, the company obtained interim access to $11.7 million of the DIP financing on May 29.

When requesting approval of the facility, Metaldyne said the financing would be used for the company's normal working capital requirements, including employee wages and benefits, supplier, utility and lease payments and other operating expenses during the reorganization process.

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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