Today, RHJ has issued a statement announcing the purchase agreement has not been approved by the bankruptcy court, thus it was terminated. RHJ says it retains the right to enter the sale auction scheduled for August 5.
"RHJ International announced today that its purchase agreement with Metaldyne Corporation ("Metaldyne") to buy certain powertrain and other Metaldyne operating assets and the stock of certain foreign subsidiaries of Metaldyne was not approved by the bankruptcy court and has terminated. The sale of Metaldyne is being conducted under a court-supervised sale process pursuant to Section 363 of the U.S. Bankruptcy Code and RHJI may elect to participate in the sale auction scheduled to be held on August 5, 2009," RHJ said in a statement.
The deal between the two was estimated at around $100 million, with 20 percent of that amount to be handed in cash. RHJ would also have provided funding for Metaldyne's future working capital needs.
"The Metaldyne operations being purchased have strong product portfolios, advanced technologies and perform well operationally. The new powertrain-focused company RHJI is creating will be a solid supplier to the restructured global automotive industry," Thomas Amato, Metaldyne CEO said upon announcing the sale in June.
Metaldyne filed for bankruptcy on May 28. At the time, it filed two non-binding letters of intent to sell the majority of its assets under a court supervised process, with the only two interested parties being RHJ International and the Carlyle Group.
Google News