Bankrupt sunroof specialist ASC has secured courpt approval to auction off four of its manufacturing plants.
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According to the Associated Press, a US Bankruptcy Court in Detroit signed off on the auction and
Los Angeles-based private equity investment firm Hancock Park Associates has offered $US14.7m for the plants and agreed to put down a $3m deposit to serve as the lead bidder.
The news agency noted that the Southgate, Michigan-based supplier was required to file for bankruptcy as part of the agreement with Hancock Park.
AP added that unsecured creditors had not been keen on the plan, claiming the company didn’t provide them with enough information to evaluate the deal, but creditors decided last Thursday to support the plan.
Four shuttered Michigan plants located in Gibraltar, Southgate, Lansing and Livonia are up for sale, according to the report, which also noted that ASC blamed the closures on its financial difficulties, caused by declining sales in the automobile industry.
The auction is scheduled for 13 June, AP added.
