Amcast gets court approval to terminate pension plan

By Caroline Salls

Pittsburgh, June 2 - Amcast Industrial Corp. obtained approval for a distress termination of its pension plan to allow for confirmation of its first amended plan of reorganization, according to a Thursday filing with the U.S. Bankruptcy Court for the Southern District of Ohio.

In its motion, Amcast said it must terminate the pension plan because it will not be able to generate the $30.1 million necessary to fund the plan after emerging from bankruptcy.

Although no required contribution is projected for 2005, the projected cash needed to cover minimum funding obligations for the pension plan is estimated to be $6.4 million for 2006, $10.7 million for 2007, $7.2 million for 2008, $4.5 million for 2009 and $1.3 million for 2010.

Taking into account reorganization expenses, debt service, capital expenditures and taxes, Amcast expects to have negative $16.04 million in cash flow at the end of fiscal year 2005, negative $4.75 million at the end of 2006, negative $2.97 million at the end of 2007 and $850,000 at the end of 2008.

Amcast, a Dayton, Ohio, manufacturer of plumbing and auto components, filed for Chapter 11 on Nov. 30, 2004. Its case number is 04-40504.

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