Tower Automotive coating system purchase agreement approved

By Caroline Salls

Pittsburgh, June 14 - Tower Automotive Inc. obtained court approval of its purchase agreement with Metalsa S de RL for its Eisenhower Electric Coating System and related equipment, according to a Tuesday filing with the U.S. Bankruptcy Court for the Southern District of New York.

Although the liquidation value of the system was appraised at $150,000, Metalsa has agreed to pay $1 million.

Tower said the market for the system is "extremely limited" and it would cost the company several thousand dollars to drain the chemicals from the vats and decommission and store the system if it could not be sold.

Tower Automotive, a Novi, Mich.-based maker of automotive assemblies, filed for Chapter 11 on Feb. 1. Its case number is 05-10578.

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