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Bankrupt Metaldyne Corp.’s three northeast Indiana plants have been bought by two private-equity groups.
The move came as a surprise in a bankruptcy auction last week, and it comes after Plymouth, Mich.-based Metaldyne announced plans to sell its Bluffton plant to another buyer.
The buyers wouldn’t say Friday what their plans are for the plants, but in a statement, Metaldyne said the purchase was best for all involved – including the employees.
Auto parts maker Metaldyne declared bankruptcy May 27, and its assets were put up for sale.
In June, Metaldyne announced an agreement to sell its Bluffton powertrain plant to a new subsidiary of RHJ International, which also owns Metaldyne’s former parent company, Asahi Tec.
But last week, during an auction in bankruptcy court, two private-equity groups representing several Metaldyne creditors bid $40 million in cash and agreed to forgive $400 million in company debt in exchange for almost all Metaldyne assets, including the plant in Bluffton and others in Fremont and Edon, Ohio.
“Everything changed during the auction,” Metaldyne spokeswoman Marge Sorge said.
The company buying the assets, MD Investors Corp., is a partnership between Washington, D.C.-based Carlyle Group and New York-based Solus Alternative Asset Management LP.
Neither Carlyle nor Solus on Friday would discuss their plans for Metaldyne.
“We don’t own it yet,” Carlyle Group spokesman Chris Ullman said. “We never comment on something we don’t own.”
A man who would identify himself only as Ryan said Solus doesn’t speak to the media.
Sorge said the private-equity firms likely don’t have a clear plan for their new assets yet.
“They’re still working all that out,” she said. “This is just the very beginning.”
A statement by Metaldyne appeared to indicate that the buyers plan to keep operating the plants they’re buying.
“We believe the sale of these businesses as a going concern represents the best way to continue to serve our customers and preserve as many jobs as possible,” the statement said.
Last month, Metaldyne cut about 100 employees from its Edon plant, citing the loss of a contract with Chrysler Group LLC. That left about 150 at the plant.
