Metaldyne eyes four-month exclusivity extension to complete sale

By Caroline Salls

Pittsburgh, Aug. 27 - Metaldyne Corp. is seeking an extension to its exclusive periods to file a plan of reorganization and solicit votes on the plan, according to a Thursday filing with the U.S. Bankruptcy Court for the Southern District of New York.

The company wants to extend its exclusive filing period to Jan. 22, 2010 from Sept. 24 and the solicitation period to March 23, 2010 from Nov. 23.

According to the motion, the administration of the cases and the development of the Chapter 11 plan will require additional time and effort once the company's asset sale closes.

Because of the timing to receive necessary governmental approvals, Metaldyne said it expects the sale to close in late September.

As a result, Metaldyne said it needs more time to close the sale transaction, develop and implement a plan for winding down and monetizing the assets that aren't sold and work with other stakeholders to obtain confirmation of a Chapter 11 plan.

Under a related accommodation agreement, the asset sale is required to close by Oct. 1.

In addition, the company said it recently secured the agreement of its post-bankruptcy lenders and its pre-bankruptcy working capital lenders to extend the company's ability to borrow money and use cash collateral until Oct. 2.

A hearing is scheduled for Sept. 16.

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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