Bankrupt Auburn Foundry Inc., Auburn, IN, now has a reorganization plan that according to local reports will make it possible to return to business as usual by September. A federal bankruptcy court will review the plan before presenting it to creditors to gain their approval.
Auburn Foundry produces ductile iron and gray iron castings at two plants in Auburn, IN. Customers include manufacturers in the automotive, truck, and RV markets, and the appliance industry. Auburn filed for Chapter 11 bankruptcy (creditor protection) in February after it failed to find financial coverage to pay mounting debts.
The reorganization plan envisions a new company called AFI L.L.C. being formed to buy the existing company’s assets and assume some liabilities. It has assembled a capital package reported to be worth almost $10 million.
Still to be worked out is a labor agreement with the union representing workers at the two plants. The reorganization cannot be completed without the union’s approval.
Tom Woehlke, Auburn Foundry president and CEO, stated: "It has been a long and arduous process, but the restructuring is just about complete. The foundry operations are supported by a strong customer base, loyal vendors, hard working employees and solid financial support. With that combination, all the parts are in place to be successful."