Metalforming private facility sale draws customer objection

By Caroline Salls

Pittsburgh, Sept. 7 - Metalforming Technologies Inc.'s proposed sale of its Lexington, Ky., facility drew objection from customer Arvin Sango Inc., which said Metalforming is attempting to transfer ownership in tools owned by Arvin.

According to the objection filed Tuesday with the U.S. Bankruptcy Court for the District of Delaware, Arvin fully owns some of the tooling that is used by Metalforming in manufacturing.

However, the proposed sale agreement calls for tools and other personal property owned, leased or employed by the company in the conduct of business to be included in the assets to be purchased by Elite Metal Products, LLC.

Arvin said it does not consent to the sale or transfer of the tooling and said any transfer would be "improper and would exceed the authority granted under the bankruptcy code."

A hearing on the sale of the Lexington facility is scheduled for Thursday.

Metalforming, a Chicago-based automobile parts manufacturer, filed for bankruptcy on June 16. Its Chapter 11 case number is 05-11697.

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