Contech L.L.C., the diecasting and metal forming group that filed a Chapter 11 bankruptcy claim in January, has petitioned the court overseeing the matter to convert its case to a Chapter 7 claim.
Cerion L.L.C., an operating unit of private equity group Revstone Industries L.L.C., recently bought several Contech operations at auction. These include plants at Alma, Dowagiac, and Portage, MI; Auburn and Pierceton, IN; and Clarksville, TN.
In the course of its Chapter 11 bankruptcy reorganization, Contech sold or closed most of the assets of its two business units, and its affiliate Contech U.K.
Now, Contech assets that Cerion did not buy are due to be liquidated. Contech's debtor-in-possession financing is set to mature July 10, and no further extension is expected from its creditors. Once the financing matures the company will have no other source of capital, so liquidation is its only alternative.
Revstone, meanwhile, has switched its attention to another bankrupt metalcaster, Intermet L.L.C. The group reportedly paid $11 million at auction for Intermet, which has yet to be confirmed by the court overseeing the Intermet bankruptcy.
Contech Seeks to Liquidate Remaining Assets
Revstone reportedly now turning to Intermet