NEW YORK Michigan Steel Inc.s assets and real estate are slated for auction July 10 after the foundry went into default earlier this year.
"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.
Muskegon-based 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 the letter.
"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.
Makary couldnt be reached for comment.