New, Higher Bid Offered for Auburn Foundry

No comment from company; closing looms

According to the Ft.Wayne, IN, Journal Gazette, a second group of investors has emerged with a new high bid for Auburn Foundry Corp. Summit Investment Management has topped the $5.1-million offer for the gray and ductile iron foundry, which has been in Chapter 11 bankruptcy since February 2004.

Auburn has not reported the amount of the new bid.

According to earlier reports, the company hoped to have the court overseeing its creditor protection and reorganization process finalize a purchase by Akron, OH-based Reserve Group by the end of this week.

Based in Denver, Summit Investment Management describes itself as a privately held company that has closed transactions totaling more than $1 billion, “representing a diverse cross segment of industries.”

Auburn Foundry consists of two plants in Fort Wayne, one of which has already been closed as part of an earlier reorganization strategy to consolidate operations at the newer site. Now, however, the company has said it will close the remaining plant if a new buyer is not found by April 22.

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