Michigan Steel Inc.s assets and real estate are slated
for auction July 10 after the foundry went into default earlier
"The event starts ...
with the sale of the real estate, a 17-acre lot on Lake
Muskegon (Mich.). The sale of the foundrys equipment,
systems and machinery will follow," auction house Stuart B.
Millner & Associates, Union, Mo., said.
Michigan Steel, which made carbon, low-alloy and high-alloy
steel castings, according to its website, went into default
after experiencing a "significant cash shortage for several
months," Robert F. Wardrop II, attorney at Grand Rapids,
Mich.-based law firm Wardrop & Wardrop PC, wrote in a
letter to the companys creditors.
The foundry ceased
business operations in late February without filing for Chapter
7 liquidation or Chapter 11 bankruptcy protection, according to
"There appears to be
no benefit to creditors in filing for bankruptcy. The
deficiency owed to the secured creditor after liquidation of
all assets will be significant," Wardrop wrote.
Michigan Steel, under
founder and chief executive officer Vaughn W. Makary, bought
the former West Michigan Steel Foundry in 2002 after
Dallas-based parent TIC United Corp. filed for Chapter 11 in
2000, according to Michigan Steels website.
be reached for comment.