Auburn Foundry

Auburn Foundry, Inc. (AFI) was a manufacturer of cast gray and ductile iron parts for the automotive, trucking, trailer, appliance and compressor industries. Headquartered in Auburn, Indiana, AFI filed for bankruptcy in February 2004 and after a failed restructure attempt with its senior lenders, AFI announced in December 2004 that the company would liquidate its assets.

Subsequent to the bankruptcy filing but prior to the 363 sale scheduled for April 2005, Summit acquired AFI’s $25 million debt from two lending institutions. Thereafter, Summit was approached by a premier global metal casting company who was interested in partnering on certain assets of AFI. 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 reestablish operations of one of AFI’s plants. By late July 2005, certain plant operations of AFI were operational.

In September 2005, as part of the financial restructuring, AFI obtained a new financing package, which partially refinanced out some of the debt held by Summit. The plant operations enjoyed tremendous success and growth during its first year of operations, exceeding expectations. By June 2006, Summit’s JV partner successfully removed Summit two years ahead of schedule (under prearranged terms), completing a successful turnaround.

Today, the AFI 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.