Federal-Mogul granted court approval of $6.54 million Elstead, England, property sale

By Jennifer Lanning Drey

Portland, Ore., Dec. 1 - Federal-Mogul Corp. obtained court approval of the $6.54 million sale of its Elstead, England, property to MMC Developments, Ltd., according to a Friday filing with the U.S. Bankruptcy Court for the District of Delaware.

The Elstead property is owned by Federal-Mogul debtors T&N Ltd. and Federal-Mogul Camshafts Ltd.

Federal-Mogul also gained court approval for Federal-Mogul Camshafts to enter into a leaseback arrangement - under which MMC will lease a portion of the Elstead property back to Federal-Mogul Camshafts following the sale - and approval for Federal-Mogul Camshaft Castings Ltd. to enter into a new lease agreement with MMC related to Lydney, England, property MMC previously purchased from Federal-Mogul Camshaft Castings.

In recent months, the company said its Elstead operations are not a core business, and, as a result, it is looking to downsize or sell the Elstead business.

MMC has paid a $326,810 deposit toward the purchase price.

Federal-Mogul, a Southfield, Mich.-based auto parts manufacturer, filed for bankruptcy on Oct. 1, 2001. Its Chapter 11 case number is 01-10578.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.