Metalforming given approval to sell Lexington, Ky., plant

New York, Sept. 27 - Metalforming Technologies, Inc. was given authorization to sell its Lexington, Ky., plant, according to a Monday filing with the U.S. Bankruptcy Court for the District of Delaware.

Under the agreement approved by the court, Elite Metal Products, LLC will pay $6.09 million.

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.

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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