Metaldyne asset sale approval order affirmed by district court

By Caroline Salls

Pittsburgh, Dec. 30 - Metaldyne Corp.'s asset sale approval was affirmed by the U.S. District Court for the Southern District of New York following an appeal by pre-bankruptcy term lender BDC Finance, LLC (Black Diamond), according to a Wednesday filing with the U.S. Bankruptcy Court for the Southern District of New York.

According to the district court ruling, Black Diamond did not prove that purchaser MD Investment Corp. did not act in good faith in connection with the asset sale.

The lender alleged that MD Investment schemed with the company to freeze out cash bidders.

However, judge Denise Cote found no evidence of "fraud, collusion, or any impropriety."

Metaldyne, a Plymouth, Mich.-based maker of metal-based components, assemblies and modules for transportation-related powertrain and chassis applications, filed for bankruptcy on May 27, 2009. The Chapter 11 case number is 09-13412.

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