Bethany Tabb, Courier-Times Staff Writer
Metaldyne faces an uncertain future after the corporation filed for bankruptcy protection late Wednesday night.
Corporate spokeswoman Marge Sorge said the company filed the voluntary petition under Chapter 11 of the U.S. Bankruptcy Code. What that means for New Castle will be determined later, she said.
The decision to file came down to liquidity, Sorge said, or an asset's ability to be converted quickly into cash without losing value.
That issue combined with a tight credit market and the situation with General Motors and Chrysler were the primary reasons, she said.
Because of its bankruptcy, the company will sell some of its businesses under court supervision. Sorge said Metaldyne has already received two letters of intent from private equity firms, one from RHJ International and another from The Carlyle Group.
Sorge said Metaldyne will continue to receive bids, and a bankruptcy judge will determine which bidder is selected.
But any sale the corporation makes won't include New Castle. Instead the company is talking to Chrysler about the future of the plant.
"At this point, we're not marketing New Castle," Sorge said.
The plant won't be marketed because it's operating significantly under its capacity, she said. With current marketing conditions, she said, it would be difficult to interest anyone in buying the plant.
Sorge wouldn't give specifics on what could happen to Metaldyne in New Castle, and she wouldn't confirm or deny that closing is a possibility. She said the possibilities are "all over the place" and depended on the outcome of conversations with Chrysler.
Metaldyne is talking to Chrysler because it's the plant's primary customer, she said.
Harry Chase, president of United Auto Workers Local 371, got a call about the filing at 6:15 Thursday morning as he was heading to work at the plant. He wasn't surprised by the news.
"I saw it coming," he said. "I just didn't know when."
He was told that the company didn't have details on what will happen next but will pass information along as they receive it.
Employees are handling the news well, he said, but they're worried about keeping their jobs.
"They want answers. We want answers," he said. "So far we're not really getting very many answers. It's kind of aggravating."
Only about 83 people are left at what was once Henry County's largest employer. About 280 people were laid off indefinitely April 30 at Metaldyne when Chrysler stopped vehicle production to complete its deal with Italian carmaker Fiat.
Sorge said the company hopes to move quickly in its sale of assets. Officials hope to come out of bankruptcy in a matter of months, she said.
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