(Reuters) – MMC Precision Holdings, which supplies Caterpillar Inc (CAT.N) and Deere & Co (DE.N), filed for Chapter 11 bankruptcy and is seeking a buyer for the business, according to court documents.
MMC said the recession had cut its sales by a third over the past year and, combined with tight credit markets, forced the company and five subsidiaries to seek court protection from creditors.
The manufacturer of engineered metal products is seeking court approval for $20 million in bankruptcy funding from its current lenders to give it the funds it needs to complete its restructuring and auction.
MMC has debts of $100 million to $500 million and assets of $50 million to $100 million, according to court documents. The company said it had not made quarterly interest payments on some of its debt since 2007.
Brazos Private Equity Partners LLC acquired an 80 percent stake in Morton Industrial Group Inc, the parent of MMC, in 2006. The deal took the company private and valued the equity at $60 million.
The company said it had lost $6.7 million on sales of $208 million last year, and employed about 1,000.
The case is In re MMC Precision Holdings Corp, US Bankruptcy Court, District of Delaware, No. 09-10998. (Reporting by Tom Hals; Editing by Lisa Von Ahn)