Metalforming Technologies' bidding procedures for $25 million asset sale approved

By Caroline Salls

Pittsburgh, July 18 - Metalforming Technologies Inc. obtained 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 its assets, according to a Monday 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.

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 $400,000 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, $400,000 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.

The auction will be held Sept. 26. The sale hearing will be held Sept. 28.

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

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