LOS ANGELES Pacific Steel Casting Co. is "talking to potential buyers" while it continues to conduct "business as usual," a spokeswoman told AMM, without revealing potential suitors.
Berkeley, Calif.-based Pacific Steel, which claims to be the fourth-largest remaining foundry in the United States, stressed in a court filing this week that it intends to continue operations regardless of whether a buyer is found.
"PSC has been vigorously marketing its assets and expects to either enter into a global sale of its assets or to confirm a conventional plan of reorganization that will allow it to continue its business," the company said in documents filed March 17 in U.S. Bankruptcy Court in Oakland, Calif.
The next step in the sales process would occur in April, "when a motion is filed to establish bid procedures to set the stage for an auction," the spokeswoman said.
Pacific Steel filed for Chapter 11 bankruptcy protection from creditors March 10 (amm.com, March 12). It cited several challenging issues, including a "flood" of worker compensation claims and an impending $5.4-million settlement of a "wage and hour" class-action lawsuit.
Recipients of the class-action settlement are now included in a list of Pacific Steels 20-largest unsecured creditors, according to a filing March 18. While an attorney for the recipients acknowledged that this puts them in line with other unsecured creditors, he said hes optimistic his clients will receive full payment, judging by preliminary estimates of Pacific Steels assets at a court hearing last week.