Auburn Foundry Sale Approved, Finally

June 12, 2005
State environmental agency gains agreement on landfills

According to news reports in Indiana, the state’s environmental regulatory agency has withdrawn objections that have been stalling the sale of Auburn Foundry Inc. The owner of two foundries in Auburn, IN, agreed in April to sell its assets to Summitbridge National Investments L.L.C., but the bankruptcy court overseeing the foundry’s restructuring process had been reviewing the Indiana Department of Environmental Management’s objection that landfills on the two sites were not included in the planned sale.

The ductile and gray iron foundry produces automotive, truck, RV, and appliance castings. It filed for Chapter 11 bankruptcy in February 2004. One of the foundries has been closed; the other is idle as repairs are completed.

Summitbridge, based in Denver, has offered $12 million for the two plants. It’s plan is to close the older of the two, and to operate the other in some undetailed fashion. Auburn Foundry representatives have said the plant will continue to operate in a scaled-down format that is more cost-competitive.

The IDEM had said the plants included two landfills that required remediation but were not included in the sale agreement. After Summitbridge and the IDEM arrived at a verbal agreement to settle the objections, the agency withdrew its objection.

Summitbridge reportedly agreed to contribute $25,000 to aid the site remediation effort. The sites will continue to be owned by Auburn Foundry.