Former Metaldyne out of bankruptcy after liquidation plan takes effect

By Caroline Salls

Pittsburgh, March 30 - Oldco M Corp., formerly Metaldyne Corp., emerged from Chapter 11 bankruptcy when its plan of liquidation took effect on Tuesday, according to a filing with the U.S. Bankruptcy Court for the District of Delaware.

The plan was confirmed on Feb. 23.

Under the plan, a distribution trust will be established to liquidate the company's 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 receive 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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