Industry: Metal Casting/Manufacturing

Subject: A manufacturer of cast gray and ductile iron parts for the automotive, trucking, trailer, appliance and compressor industries, headquartered in Auburn, Indiana.

Circumstance: After filing for bankruptcy and a failed restructure attempt with its senior lenders, the company announced that it would liquidate its assets. Prior to the scheduled 363 sale, Summit acquired $25 million of debt from two lending institutions.

Solution: Summit was approached by a premier global metal casting company who was interested in partnering on certain assets of the manufacturer. In less than four weeks, Summit formed a complex joint venture whereby the JV partner supplied the operating expertise and Summit supplied the capital to re-establish operations of one of the manufacturer’s plants.

Outcome: As part of the financial restructuring, the manufacturer obtained a new financing package, which partially refinanced out some of the debt held by Summit. The re-established plant enjoyed tremendous success and growth during its first year of operations, exceeding expectations.

Summit’s JV partner successfully removed Summit two years ahead of schedule (under prearranged terms), completing a successful turnaround. Today, the company’s original operators run the flagship plant of the JV partner’s six casting plants, generating in excess of $500 million in revenue. Due to the mutually beneficial and strategic relationship established during this transaction, Summit and its JV partner continue to investigate other ventures together.