Metalforming equipment lessor objects to proposed Lexington facility sale

By Caroline Salls

Pittsburgh, Sept. 13 - Metalforming Technologies, Inc. equipment lessor GE Commercial Finance objected to the company's proposed sale of its Lexington, Ky., facility on the grounds the company may be trying to sell equipment it does not own, according to a Tuesday filing with the U.S. Bankruptcy Court for the District of Delaware.

According to the objection, under bankruptcy code Metalforming can only sell property of its estate.

GE said it requested that Metalforming specify in the sale notice that the equipment owned by the lessor would not be included as part of the sale, but Metalforming failed to do so.

In turn, GE said it must conclude that the company may be improperly trying to sell equipment that it does not own and the sale should not be approved.

The sale hearing is scheduled for Sept. 23.

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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