A private equity group has offered a reported $5.1 million for Auburn Foundry, a privately owned, gray- and ductile-iron foundry in Fort Wayne, IN. Auburn has been operating in bankruptcy since February 2004. The purchase offer has been accepted by Auburn, and it waits approval by the federal court overseeing the Chapter 11 reorganization process.
The Reserve Group, Akron, OH, has offered to buy the Auburn plant that continues to operate for $4 million, and a plant idled last year for $1.1 million. Reserve specializes in acquiring manufacturing operations, having purchased a number of metal producing firms in the past.
The foundry petitioned the bankruptcy court to approve the sale by April 22. If higher bids are received in the meantime, the court would conduct an auction to determine the highest and best bid for the assets.