Amcast trustee objects to plan of reorganization

By Caroline Salls

Pittsburgh, July 14 - Amcast Industrial Corp.'s U.S. Trustee objected to the company's second amended plan of reorganization, according to a Wednesday filing with the U.S. Bankruptcy Court for the Southern District of Ohio.

Trustee Saul Eisen said the plan wrongly attempts to grant liability releases to non-debtor third parties, including Amcast officers, directors and professionals.

The trustee said only the company can be released from liability under bankruptcy law.

Also, Eisen said "because creditors were not given an opportunity to vote on the releases but are 'deemed' to release, discharge and waive any claims by voting to accept the plan, the releases are nonconsensual."

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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