Metalforming seeks approval of bidding procedures for assets sale

By Caroline Salls

Pittsburgh, June 17 - Metalforming Technologies Inc. requested court approval of bidding procedures and its choice of Zohar Tubular Acquisition, LLC as stalking-horse bidder for the $25 million sale of substantially all of its assets, according to a Thursday filing with the U.S. Bankruptcy Court for the District of Delaware.

The sale also will include all the assets of Northern Tube Inc., Crescive Die & Tool Inc. and all trademarks, tradenames and other intellectual property.

Upon entry of the sale procedures order, Zohar will pay a $1.25 million deposit to be placed in an escrow account.

If Zohar is not the high bidder, Metalforming will pay it a $500,000 expense reimbursement.

Under the bidding procedures, the sale will close by Sept. 30, unless extended by the buyer.

The purchase price by any other bidder must include the $25 million Zohar price, $500,000 expense reimbursement and an initial minimum overbid of $250,000.

Any bid after that would have to be $100,000 more than the previous bid.

At the company's discretion, a 5% deposit or $1 million deposit would be required to be paid by bidders other than Zohar.

Metalforming is requesting a hearing approving the bid procedures be held by July 8 and a hearing approving the sale be entered by Sept. 15.

Metalforming, a Chicago-based automobile parts manufacturer, filed for bankruptcy on Thursday. Its Chapter 11 case number is 05-11697.

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