Shiloh Industries Inc. filed for bankruptcy with a plan to sell its assets to private-equity firm MiddleGround Capital LLC for $218 million, subject to better offers at auction, the Wall Street Journal reported. Valley City, Ohio-based Shiloh filed for bankruptcy on Sunday in the U.S. Bankruptcy Court in Wilmington, Del., with a stalking-horse bid from MiddleGround. Shiloh’s lenders are providing a loan of more than $123 million to finance the stay in bankruptcy and to pay down some of its outstanding debt. The company makes components for vehicles specializing in parts and materials that reduce weight and noise. Its customers include Bayerische Motoren Werke AG, Daimler AG, Ford Motor Co. and General Motors Co. Shiloh and its customers were already facing headwinds before the coronavirus pandemic hit. In the year ended in October 2019, the company’s production in Asia, Europe and North America fell by 12.2 percent, 4.3 percent and 3.4 percent, respectively, according to a declaration filed with the court by Jeffrey Ficks of Ernst & Young LLP, who is serving as the company’s financial adviser.
