Auto Slump, Debt Drive Parts Supplier Into Ch. 11

Law360, New York (May 28, 2009, 12:00 AM EDT) -- Metaldyne Corp. — a parts supplier to Chrysler LLC, Ford Motor Co. and General Motors Corp. — has filed for bankruptcy with plans to sell off most of its assets, citing sharp declines in vehicle sales and manufacturing, a heavy debt load, and banks' reluctance to lend to automotive suppliers.

Metaldyne and several domestic affiliates filed for Chapter 11 protection Wednesday in the U.S. Bankruptcy Court for the Southern District of New York, listing assets and liabilities both between $500 million and $1 billion.

The company's...
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