Amcast to pay $2 million under GM claim settlement

By Caroline Salls

Pittsburgh, Feb. 26 - Amcast Industrial Corp. requested court approval of a claim settlement with its lenders and General Motors Corp., resolving Amcast's last hurdle toward a consensual plan of reorganization, according to a Monday filing with the U.S. Bankruptcy Court for the Southern District of Indiana.

Under the settlement, Amcast will pay GM $2 million in full and final satisfaction of all GM claims against Amcast and its lenders.

Amcast said since the settlement payment funds would have otherwise been paid to the lenders, the settlement eliminates the cost and risk of litigation without impacting distributions to any creditors other than the lenders, who have consented to the agreement.

Amcast, a Fremont, Ind., manufacturer and distributor of automotive products, filed for bankruptcy on Dec. 5, 2005. Its Chapter 11 case number is 05-33322.

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