International Holdings Inc. has offered to buy bankrupt
aluminum and zinc die cast parts maker Empire Die Casting Co.
for $10.75 million.
SRS and Macedonia, Ohio-based Empire agreed to an asset
purchase deal Nov. 18, according to documents filed in U.S.
Bankruptcy Court in Ohio signed by Empire president Robert A.
Hopkins and SRS president and chief executive officer Yogen
Rahangdale also is
president and chief executive officer of aluminum extruder
Whitehall Industries Inc., also based in Ludington, and former
president and chief operating officer of Detroit auto parts
supplier American Axle Manufacturing Inc., one of North
Americas largest consumers of special bar quality
SRS is the new
stalking horse bidder for Empire, according to court documents,
replacing New Growth Capital LLC, Cleveland, which had offered
$11.7 million (
amm.com, Oct. 22). But Empire and New Growth
Capital couldnt reach a mutually agreeable asset purchase
deal, said Marc Merklin, managing partner at law firm Brouse
McDowell, which is representing Empire in its bankruptcy
New Growth Capital
didnt respond to requests for comment.
Bids for Empire are
due by Dec. 16, with an auction set for Dec. 18 and a sales
hearing for Dec. 19. The deal between Empire and SRS must be
concluded by Dec. 31.
Meanwhile, Empire has
issued a Worker Adjustment and Retraining Notification (WARN)
Act notice, due to take effect Dec. 31, for 211 employees at
its Macedonia facility. A potential buyer aims to run the
company as a going concern, the company said in an Oct. 28
letter to the Ohio Department of Jobs and Family Services, and
"the new owner may offer employment to some or all of Empire
... employees, but that is entirely outside of the
The WARN notice was
largely a formality, Merklin said. "If the purchase goes
through, Empire will be terminating everybody and they will
then be hired by the buyers," he said. "It is absolutely not
reflective of any intent to terminate anybody."
Empire Die Casting
filed for Chapter 11 bankruptcy protection Oct. 16 (
amm.com, Oct. 17).