Metalforming requests approval of $6.09 million private sale of facility

By Caroline Salls

Pittsburgh, Aug. 19 - Metalforming Technologies, Inc. requested approval of the proposed $6.09 million private sale of its Lexington, Ky., facility to Elite Metal Products, LLC, according to a Thursday filing with the U.S. Bankruptcy Court for the District of Delaware.

According to the filing, if the sale is not consummated, Metalforming would be forced to liquidate the facility at a projected value far less than the purchase price.

The buyer is a joint venture acquisition vehicle created by industry participant Oliver Isaac, Metalforming and Kevin Stuban, manager of the Lexington operations.

Under the purchase agreement, 51% of the ownership interests of Elite Metal would be held by an entity controlled by Isaac, 44% would be owned by Metalforming and 5% would be held by Stuban.

The purchase price is comprised of $2.3 million in cash at closing, $1.6 million in assumed liabilities, a $1 million note, a $1 million profits interest and $193,000 in ownership interest.

A hearing is scheduled for Sept. 8.

Metalforming, a Chicago-based automobile parts manufacturer, filed for bankruptcy on June 16. Its Chapter 11 case number is 05-11697.

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