Die Casting Co. Inc. has filed for Chapter 11 bankruptcy
protection and is seeking court approval to be acquired by a
company that would operate it as a going concern.
The Macedonia, Ohio,
aluminum and zinc cast parts maker cited production problems as
well as high labor and freight costs as reasons for filing the
petition, according to documents filed in U.S. Bankruptcy Court
Empire Die Casting,
owned 97.7 percent by chairman and chief executive officer
Richard Rogel, also blamed its troubles on the "ineffective
implementation" of a new enterprise resource planning system,
according to court documents.
The company has
"robust capabilities providing precision cast parts to customer
specifications" but has "confronted several operational and
financial challenges that have strained its resources,"
president Robert Hopkins said in an affidavit.
Empire Die Casting,
which according to Hopkins recorded sales of $34 million in its
last fiscal year, estimated its assets at between $10 million
and $50 million and its liabilities at between $1 million and
The top unsecured
creditors include The top unsecured creditors include Imperial
Zinc Corp., Chicago, owed nearly $1.8 million; Eastern Alloys
Corp., Maybrook, N.Y., owed $423,759; Arco Alloys Corp.,
Detroit, owed $175,785; Aluminum & Zinc Metal Sales Inc.,
Monroe, Mich., owed $120,706; and E.A. Aluminum Corp.,
Maybrook, N.Y., owed $90,339. Other unsecured creditors include
Akron, Ohio-based energy company Ohio Edison, owed $84,257; and
Accu-Die & Mold Inc., Stevensville, Mich., owed
Empire Die Casting
retained Amherst Capital Partners LLC on Aug. 13 to find a
buyer for the company, Hopkins said in his affidavit. Amherst
had found "a number of parties" potentially interested in
acquiring the companys assets as a going concern, and the
company is seeking court authority for a sale, he added.
Of Empire Die
Castings 211 employees, 169 are hourly workers
represented by Industrial Maintenance and Vending Machine
Service Employees union Local 416, which is affiliated with the
International Brotherhood of Teamsters, Hopkins said. The
companys contributions to the unions pension fund
"are a substantial source of ... financial stress," he
"production inefficiencies" had caused "inflated overtime
costs," Hopkins said.
Empire Die Casting is
seeking court approval to pay claims related to tooling
necessary for its operations, Hopkins said, noting that the
companys ability to market and sell itself as a going
concern could be jeopardized if work were to be stopped because
tooling necessary for production was not available.
Three years ago, the
company was slated to receive an $835,000 industry-efficiency
award as part of the American Recovery and Reinvestment
Acts State Energy Program (
amm.com, Feb. 9, 2010).