Metalforming disclosure statement draws objections from U.S. Trustee, PBGC

By Caroline Salls

Pittsburgh, Feb. 7 - Metalforming Technologies, Inc.'s U.S. Trustee and the Pension Benefit Guaranty Corp. objected to the company's disclosure statement for its Chapter 11 plan of liquidation, according to Monday filings with the U.S. Bankruptcy Court for the District of Delaware.

According to U.S. Trustee Kelly Beaudin Stapleton, the disclosure statement improperly attempts to discharge or release third parties and lacks information from which creditors can determine whether the plan is in their best interest.

The U.S. Trustee said the statement does not include a required liquidation analysis to be compared to plan terms.

In addition, Beaudin Stapleton and the PBGC said the statement does not provide proof that Metalforming qualifies for substantive consolidation.

According to the PBGC's objection, the statement also does not provide adequate information on the possible termination of the Northern Tube, Inc. UAW Retirement Plan.

A hearing on approval of the disclosure statement is scheduled for Monday.

Metalforming, a Chicago-based automobile parts manufacturer, filed for bankruptcy on June 16, 2005. Its Chapter 11 case number is 05-11697.

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