NEW YORK (AP) -- The assets of auto parts maker Metaldyne Corp. were bought by a group of Metaldyne's lenders, including private equity firm The Carlyle Group and Solus Alternative Asset Management LP, the company said.
Metaldyne filed for Chapter 11 bankruptcy protection in May and its assets were put up for auction on Wednesday. The company said the group of investors is paying $40 million in cash, assuming credit obligations to suppliers and other liabilities, and is credit bidding more than $400 million in debt.
The investors made the highest bid for Metaldyne under the name MD Investors Corp. If the sale is approved by a bankruptcy court, MD Investors would acquire Metaldyne's powertrain, balance shift module, tubular products and chassis assets. It will also own all of Metaldyne's sintered products, European forgings and vibration controls products in the U.S., Europe, Asia, Brazil and Mexico, and plants in Bluffton, Ind., Litchfield, Mich., and potentially Twinsburg, Ohio.
The company confirmed a reorganization plan with the buyers before the deal was made.
Metaldyne said it expects the U.S. Bankruptcy Court for the Southern District of New York will approve the sale this week. Last month, private equity firm RHJ International SA offered to buy some of Metaldyne's assets and stock for $100 million. That deal was rejected by a bankruptcy court.
