Holding company Revstone Industries LLC has two more months to file its Chapter 11 reorganization plan, following an extension on that exclusive right granted by the federal court overseeing Revstone’s bankruptcy case.
Judge Brendan Shannon of the U.S. Bankruptcy Court in Wilmington, Del., ruled that Revstone — having filed a voluntary petition of bankruptcy December 3, 2012 — will retain the exclusive right to file a reorganization plan until July 31, and that the company may solicit support for that plan until September 30.
Revstone filed for creditor protection after a Michigan court ordered Revstone to pay almost $27 million to its largest creditor, Boston Capital LLC. It followed that filing in January with separate bankruptcy petitions for two of its subsidiaries, Greenwood Forgings LLC and U.S. Tool & Engineering. The forging operation has been offered for sale.
Portfolio Downsizing
In March, Revstone announced the closing of two aluminum diecasting operations, Contech Castings LLC in Auburn and Pierceton, IN. More than 200 workers have been affected by those decisions.
Revstone has 39 plants and operations in the U.S., Mexico, and Asia.
Based in Southfield, MI, and assembled in stages since 2008 as a chain of automotive components suppliers, Revstone produces gray and ductile iron shell castings; aluminum diecastings, and aluminum forgings; precision machine parts; tooling; and torsional vibration dampers; automotive subassemblies; and lighting systems.
Since the Chapter 11 filing in December, other creditors – including General Motors Co. and the U.S. Department of Labor, have sought a bankruptcy court-appointed trustee to administer the case in place of Revstone’s management. They contend that Revstone’s management team, including owner George Hofmeister, has "exhibited disabling self-interest, incompetence and gross mismanagement" in the management of the company, the bankruptcy filing, and the reorganization process.
The court has not yet ruled on the request to appoint a trustee.