INDUSTRY news
Chassix Approaches Exit to Chapter 11 Bankruptcy Chassix Holdings Inc., South-
field, Mich., held strong support among its creditors as it entered a bankruptcy court confirmation hearing in July. More than 70% of bondholders and creditors voted to support the Chassix plan. A supplier of automotive com-
ponents, including castings, Chassix reported annual revenue of about $1.4 billion. It filed for Chapter 11 bankruptcy in March, claiming
it owed more than $525 million to bondholders and more than $65 million to other creditors including other materials manufacturers and automotive suppliers. The reorganization plan, largely a debt-equity swap, would give bondholders $375 million in secured debt, 97.5% of stock in the reorga- nized company and another 2.5% stake to trade creditors and unse- cured bondholders.
Chassix was formed by Platinum
Equity LLC, Beverly Hills, Calif., by integrating Diversifi ed Machine Inc. and SMW LLC into a single source of casting and machining operations with locations in the U.S., Mexico, Brazil, China and Europe. Chassix serves major automotive customers including Ford Motor Co., Detroit, and Nissan North America, Smyrna, Tenn. ■
Pace Industries, Port City Group Announce Merger
Pace Industries, Fayetteville, Ark.,
and Port City Group, Muskegon, Mich., have announced a merger that will establish a combined company of 12 divisions and 21 facilities with sales of approximately $600 million in the U.S. and Mexico. Pace Industries is a leading alumi-
num, zinc and magnesium diecasting company off ering capabilities and services such as advanced engineering, tool making, prototyping, machin- ing, fi nishing and painting. Port City Group is a fully integrated manufac- turer of aluminum die castings, zinc die castings, mechanical assemblies and injected molded plastics. “Blending the strengths of Pace
and Port City Group will result in a formidable automotive supplier and preferred non-automotive supplier in the diecasting industry and build our capabilities to deliver better quality, service and value to customers,” said Scott Bull, president and CEO, Pace Industries. Port City Group will become a
division of Pace Industries. John Essex will remain in his current role as CEO of Port City Group while joining Pace’s board of directors as one of its largest shareholders. “We needed a platform for our
growth that would provide us greater geographical reach than what we had with our Michigan-based facilities,” Essex said. “T is merger will provide needed capacity in closer proximity to some of our customers in North America while expanding our produc- tion capability.” ■
8 | METAL CASTING DESIGN & PURCHASING | Jul/Aug 2015
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