Metaldyne files for bankruptcy protection
Clients Metaldyne Corporation
Jones Day represented Metaldyne Corporation -- one of the top 50 North American auto parts suppliers with over $1 billion in sales -- and its subsidiaries in an out-of-court tender offer transaction pursuant to which over $350 million in long term debt was extinguished. While this transaction resolved certain of Metaldyne's financial problems, conditions in the automotive industry continued to worsen in late 2008 and early 2009. Accordingly, on May 27, 2009, Metaldyne Corporation and its subsidiaries filed chapter 11 cases in the United States Bankruptcy Court for the Southern District of New York.
In connection with the filing, Jones Day assisted Metaldyne in negotiating a $20 million debtor in possession financing facility and related accommodation agreement with Metaldyne's major customers and worked to implement first-day relief to stabilize Metaldyne's businesses in a highly volatile time for the industry. Jones Day continues to assist Metaldyne in winding down facilities that were not sold and working to confirm a plan of liquidation.