Another Aluminum Diecaster in Chapter 11
Auto Cast Inc. says its restructuring is already done
Auto Cast Inc., a Grandville, MI, an aluminum and zinc diecaster, recently filed for Chapter 11 bankruptcy protection. According to a statement by Auto Cast CEO Carl Homrich, the filing resulted from “an aggressive position” by the diecaster’s only secured lender, Huntington National Bank.
The field of automotive diecasters has been hit notably hard by the automotive industry’s downsizing. Auto Cast produces a range of automotive components and fixtures in aluminum and zinc alloys, offering design and prototype capabilities as well as finishing service.
"Today's credit market has resulted in Huntington National Bank cutting off credit and demanding unconditional personal guarantees from the owners for 100 percent of all indebtedness," according to Homrich’s published statement. The company contends that it has never missed a payment on any of its three secured loans to Huntington, though Homrich admitted the company had on occasion been “out of formula” with some terms of the covenants.
Auto Cast’s assets and liabilities are reported between $1 million and $10 million. It has 45 employees, and it indicates that business will continue without interruption during the bankruptcy period.
Homrich reported that Auto Cast has already restructured in response to the automotive industry decline, reducing its workforce by more than half.
Auto Cast Inc. says its restructuring is already done
Auto Cast Inc., a Grandville, MI, an aluminum and zinc diecaster, recently filed for Chapter 11 bankruptcy protection. According to a statement by Auto Cast CEO Carl Homrich, the filing resulted from “an aggressive position” by the diecaster’s only secured lender, Huntington National Bank.
The field of automotive diecasters has been hit notably hard by the automotive industry’s downsizing. Auto Cast produces a range of automotive components and fixtures in aluminum and zinc alloys, offering design and prototype capabilities as well as finishing service.
"Today's credit market has resulted in Huntington National Bank cutting off credit and demanding unconditional personal guarantees from the owners for 100 percent of all indebtedness," according to Homrich’s published statement. The company contends that it has never missed a payment on any of its three secured loans to Huntington, though Homrich admitted the company had on occasion been “out of formula” with some terms of the covenants.
Auto Cast’s assets and liabilities are reported between $1 million and $10 million. It has 45 employees, and it indicates that business will continue without interruption during the bankruptcy period.
Homrich reported that Auto Cast has already restructured in response to the automotive industry decline, reducing its workforce by more than half.
