MMC Precision files Chapter 11 bankruptcy, looks to sell assets

By Caroline Salls

Pittsburgh, March 23 - MMC Precision Holdings Corp. filed for Chapter 11 bankruptcy Sunday in the U.S. Bankruptcy Court for the District of Delaware.

According to court documents, MMC has experienced liquidity pressures prompted by significant losses from continuing operations and an at least 40% drop in sales over the first two months of 2009.

As a result, the company said it filed for bankruptcy to address its liquidity problems, stabilize its business and work toward a restructuring through a going-concern sale of substantially all of its assets.

MMC said it expects to file a bid procedures motion by April 8.

In connection with the bankruptcy filing, the company has secured a commitment for $20 million in debtor-in-possession financing. National City is the administrative agent.

The facility will mature on the earliest of June 5, upon the sale of its assets, the effective date of a plan of reorganization or liquidation and the conversion or dismissal of the Chapter 11 case.

Interest will be Base rate plus 450 basis points.

According to court documents, MMC has $50 million to $100 million in assets and $100 million to $500 million in debt.

The company's largest unsecured creditors include:

• Tower Square Capital Partners II-A, LP of Boston, with a $10.52 million subordination and intercreditor agreement claim;

• Tower Square Capital Partners II, LP of Boston, with a $10.51 million subordination and intercreditor agreement claim;

• J.D. & Co. Steel Program of Moline, Ill., with a $3.99 million trade claim;

• MassMutual Corporate Investors of Boston, with a $2.9 million subordination and intercreditor agreement claim;

• MassMutual Participation Investors of Boston, with a $1.53 million subordination and intercreditor agreement claim; and

• Tower Square Capital Partners II-B, LP of Boston, with a $1.12 million subordination and intercreditor agreement claim.

Morton, Ill.-based MMC manufactures highly engineered metal components and subassemblies. Its Chapter 11 case number is 09-10998.

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