By Dan Gearino, The Columbus Dispatch
COLUMBUS – A South Side foundry that just laid off hundreds of workers have found its white knight.
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The fate of Columbus Castings, including a potential sale to a new owner, is in the hands of a bankruptcy court, with no timetable for resolution.
The foundry’s parent company, Constellation Enterprises, filed for Chapter 11 bankruptcy protection late on Monday in a Delaware court. The move follows mass layoffs by the company last week that have left 23 workers at a plant that recently had about 800.
On Tuesday, Columbus Castings said it has received a letter of intent from an unspecified company that is interested in buying the foundry as part of the bankruptcy process. In a Chapter 11 bankruptcy filing, a company is seeking to restructure and manage its debt.
“If consummated, the buyer intends to preserve (Columbus Castings’) continuing ability to service its customer base as well as infuse significant capital into the company,” the company said in a statement.
Stellex Capital Management, a New York private-equity firm, is the potential buyer, according to sources. The firm focuses on “middle-market companies in distress,” according to its website. Spokesmen for both Stellex and Columbus Castings said they had no comment on the identity of the buyer.
Some Stellex officials are at the plant preparing for a possible sale, according to people familiar with the situation who spoke on condition of anonymity because they were not authorized to comment.