Auburn Foundry Closed for Repairs

No ruling yet on pending sale

Auburn Foundry – which is still waiting for a bankruptcy court to approve its sale to an investor group -- closed for equipment repairs last week, according to the Fort Wayne (IN) Journal Gazette.

The gray and ductile iron foundry, in Auburn, IN, filed for creditor protection in February 2004, and earlier this year offered itself for sale after earlier reorganization strategies proved unsuccessful. The company has operated two plants in Auburn, though one has been set for closure and targeted for sale. The other, newer operation had been scheduled to continue producing castings for auto, truck, and RV builders, and appliance manufacturers.

The specific nature of the repairs was not reported, nor the duration of the project. Over 200 workers are idle as a result of the closing, according to the newspaper.

In April, Summitbridge National Investments LLC, topped a $5.1 million offer made by the Akron, OH-based Reserve Group to win the foundry's asset auction, but nearly a month has passed waiting for the bankruptcy court to approve the sale. Summitbridge is the investment arm of Summit Investment Management, Denver. Earlier this month Summitbridge stated it expects the court to approve the sale and is “continuing discussions with potential partners to operate Plant 2 as a foundry on a long-term basis.” It is also looking for potential buyers for the first plant.

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