Amcast Files Second Chapter 11
Amcast Industrial Corp has again filed for Chapter 11 bankruptcy three months after emerging from an earlier filing, according to court documents. Previously the company had filed for bankruptcy in November 2004 before clearing this status in August.
Amcast’s largest single customer is General Motors Corp, representing 80 per cent of the company’s business, the Dayton Business Journal reported. Amcast manufactures aluminium wheels for automobiles and light trucks and suspensions and brake systems.
According to a local newspaper, the new company was organised with the expectation that some revenue would continue to come from GM. Instead, GM cut back on existing programmes and told Amcast that no new business would be forthcoming, according to filings. Furthermore, Amcast has been unable to renegotiate the terms of its current Corvette wheel programme.
Amcast estimates it has between 100 and 199 creditors, and that its total assets are $16.2 million, while its total debts are $20.5 million, according to filings.
Amcast had 727 employees at the time of its petition.