Atchison Casting expects DIP to expire, negotiating cash collateral budget

New York, Dec. 24 - Atchison Casting Corp. said it is negotiating a cash collateral budget with its major creditors so that it can fund ongoing operations after its debtor-in-possession financing agreement expires on Dec. 31.

The Atchison, Kan. company said it does not expect that the DIP will be renewed.

"Without a DIP financing agreement in place, the company will not have access to the liquidity needed to continue operating, even in a limited capacity," Atchison Casting said in a filing with the Securities and Exchange Commission.

Atchison Casting added that it expects to auction off all remaining assets after Dec. 31.

On 23 Atchison Casting said it closed on the sale of its remaining operating assets, selling Amite Foundry and Machine Inc., Prospect Foundry Inc., Prime Cast Inc., ACC Global Corp. and London Precision Machine & Tool Ltd. to subsidiaries of AmeriCast Technologies Inc., an affiliate of KPS Special Situations Fund II LP.

Atchison Casting received $40 million in cash and a note; the buyer assumed certain liabilities.

Atchison Casting's Chapter 11 case is being conducted in the U.S. Bankruptcy Court, Western District of Missouri. It filed for Chapter 11 on Aug. 4.

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