Revstone Hopes to Sell Greenwood Forgings

April 16, 2013
Holding company in bankruptcy, liquidating subsidiiary Forging plant now idle No bidder in sight

Greenwood Forgings LLC in Greenwood, SC, is available for sale, according to bankruptcy court records. Revstone Industries LLC petitioned the federal court overseeing its Chapter 11 reorganization to approve its plan to sell the forging subsidiary – though it’s unclear that any offers have been made for the automotive aluminum forger.

Revstone is a holding company for various manufacturing operations that supply components for truck manufacturing and other transportation markets.

Greenwood Forgings is a onetime Kaiser Aluminum operation that forges parts for suspension, drivetrain, fuel system, and climate-control applications. Revstone Industries bought the plant in 2010.

The forging plant was idled in mid March and has been closed since March 30, according to published reports.

Recently, Revstone also closed two aluminum diecasting operations.

Revstone Industries filed a voluntary petition of bankruptcy in December 2012, and its subsidiaries Greenwood Forgings LLC and U.S. Tool & Engineering followed with separate Chapter 11 filings in early January.

On April 12, Revstone Industries requested court approval to sell the forging plant, and indicated it hopes to recover at least $2 million according to the record of the filing. “There is significant urgency to the relief requested … Severe liquidity constraints leading up to the Chapter 11 filing resulted in Greenwood losing most of its customers and revenue,” according to the filing.

The bankruptcy court previously approved Revstone’s request to use cash collateral to pay continuing expenses on the condition that it would seek court approval to liquidate its assets. Now, the company wants the court to approve a bidding procedure for Greenwood’s assets, and it requested a final sale by May 28.

The minimum bid Revstone would seek for the Greenwood Forging assets is $2 million. However, it did not list any “stalking horse” bidder, as is customary in such petitions.

Bids for the Greenwood Forging assets would be due May 17.