The trustee of the distribution trust for Metaldyne Corporation n/k/a Oldco M Corporation (Bankruptcy Court Southern District of New York) has sent out over 500 demand letters for recovery of bankruptcy preferences. With the statute of limitations for bringing of preference actions expiring on May 27, 2011, the negotiation stage of the claim resolution process will be intensifying. The trustee, Executive Sounding Board Associates Inc. (the “Trustee”) has reported that, as of mid January, the Trustee had collected over $391,000 in preference recoveries and reduced the unsecured creditor class by over $1.38 million. Duane Morris LLP (New York, New York) has been retained to prosecute avoidance actions. Larry J. Kotler is lead attorney for Duane Morris in the bankruptcy preference recovery campaign. Pryor Cashman, LLP has been retained to prosecute avoidance actions as to which Duane Morris has a conflict.
Articles tagged with: Metaldyne Corporation
Metaldyne Bankruptcy – A Dismal Picture for Suppliers
A bleak picture emerges for bankruptcy creditors in this bankruptcy of a top 50 Tier 1 automotive supplier. Metaldyne Corporation and 30 subsidiaries (collectively referred to as “Metaldyne”) entered bankruptcy with between $60 million and $65 million in outstanding trade payables. A total of $36 million is due to suppliers on the 50 largest unsecured list. That means that smaller suppliers are going to take almost half of the potential loss.
Metaldyne Bankruptcy – Largest Unsecured Bankruptcy Creditors
Metaldyne requested and was granted authority to file a consolidated list of the 50 largest unsecured creditors of the Metaydyne Corporation and its 30 affiliated Debtors (the “Top Unsecured Creditor List”) in lieu of a separate list for each of the Debtors. The amounts owed to each of the unsecured suppliers is listed as trade debt. We are seeing several very familiar automotive parts supplier names on this list. We are also seeing some of the listed debt to automotive parts suppliers as “disputed.” This is probably an indication of a claim of set off.
Metaldyne Bankruptcy – 31 Debtors and Petitions
Metaldyne Corporation and 30 affiliated entities (”Debtors”) filed a petitions in Bankruptcy Court for the Southern District of New York for relief under chapter 11 of title 11 of the United States Code. Contemporaneously with the filing of their petitions, the Debtors filed a motion requesting that the Court consolidate their chapter 11 cases for administrative purposes only under the Metaldyne Corporation case number 09-13412. The following are the names, case numbers and copies (as available ) of the bankruptcy petitions.