Metalforming Technologies files for Chapter 11, requests $12 million DIP approval

By Caroline Salls

Pittsburgh, June 16 - Metalforming Technologies, Inc. filed for Chapter 11 bankruptcy Thursday with the U.S. Bankruptcy Court for the District of Delaware.

The company has $56.37 million in pre-bankruptcy debt consisting of $1.20 million in senior secured revolving loans, $6.60 million in junior secured revolving loans, $44.01 million in senior secured U.S. term loans, $4.36 million in senior secured Canadian term loans and a $200,000 irrevocable letter of credit.

The company's top five unsecured creditors include:

*Chrysler Corp., with a $2.76 million trade claim;

*Olympic Steel Lafayette Inc., with a $1.25 million trade claim;

*Thermopol Inc., with a $1.15 million trade claim;

*Aluminum Co. of America, with a $1.1 million trade claim; and

*ORCA Steel Processing, with a $1.14 million trade claim.

The company also requested court approval of $12 million in debtor-in-possession financing from the Canadian Imperial Bank of Commerce, as well as approval for interim use of $5 million of the DIP facility.

Proceeds will be used to pay operating expenses, for limited capital expenditures and for general corporate purposes to allow Metalforming to operate its Chapter 11 cases and sell substantially all of its assets.

Interest will be CIBC's alternate base rate plus 250 basis points.

The unused facility fee is 50 bps.

Maturity will be the earliest of consummation of a plan of reorganization or on event of default.

Metalforming is a Chicago-based automobile parts manufacturer. Its Chapter 11 case number is 05-11697.

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