Empire Die Casting Co. of Macedonia, Ohio, has filed for chapter 11 bankruptcy protection and hopes to be sold soon, Crain’s Cleveland Business reported yesterday. New Growth Capital Group LLC has submitted a letter of intent to acquire the assets of Empire Die Casting for $11.7 million in cash. New Growth Capital Group would be designated as a stalking-horse bidder for the auction, and Empire Die Casting would pay a break-up fee of $180,000 if New Growth Capital Group is out-bid. The company filed for bankruptcy on Oct. 16 in U.S. Bankruptcy Court in Akron, Ohio, listing assets of between $10,000,001 and $50 million and liabilities of between $1,000,001 and $10 million. The bid deadline is Dec. 16. Marc Merklin, a managing partner in the Akron office of law firm Brouse McDowell LPA, said that the court will hear the request for the bid procedures on Nov. 5. The main hurdle Empire Die Casting faces is a potential liability in its multiemployer pension plan; Merklin says that the pension plan has a multimillion-dollar liability and is “unworkable” as is.
