Former Metaldyne files plan of liquidation to distribute sale proceeds

By Caroline Salls

Pittsburgh, Dec. 7 - Oldco M Corp., formerly Metaldyne Corp., filed its plan of liquidation and related disclosure statement Monday with the U.S. Bankruptcy Court for the District of Delaware.

According to the disclosure statement, the company expects that most, but not all, of its assets will have been liquidated and converted to cash as of the plan effective date.

Under the plan, a distribution trust will be established to liquidate the remaining assets, resolve claims and make distributions to creditors.

Treatment of creditors will include:

• Holders of priority claims will be paid in full in cash;

• Holders of secured claims will either be paid in full in cash or receive the collateral securing their claims, at the option of the applicable debtor or the distribution trustee;

• Holders of general unsecured claims, including noteholder claims, will recover 0.4% to 2.1% through a share of unsecured creditor distributions; and

• Holders of pre-bankruptcy intercompany claims, subordinated securities claims, old common stock and subsidiary interests will receive no distribution.

Metaldyne, a Plymouth, Mich.-based maker of metal-based components, assemblies and modules for transportation-related powertrain and chassis applications, filed for bankruptcy on May 27, 2009. The Chapter 11 case number is 09-13412.

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