Released on May 10, 2011

Automotive systems supplier Martinrea International Inc., Vaughan, Ontario, Canada, has submitted the most favorable bid for insolvent Honsel AG, Meschede, Germany, which produces automotive metal castings.

Honsel develops and manufactures aluminum and magnesium products using high pressure diecasting, permanent mold casting and sand casting, as well as extruding and rolling. The company produces engine products, such as blocks, cylinder heads and oil pans; transmission products, such as housings and control parts; suspension products, such as engine cradles; and body parts, such as front boards and extrusion profiles.

Martinrea partnered with Anchorage Capital Group LLC to bid for the assets of Honsel, which is in insolvency proceedings. Martinrea and Anchorage have been selected by the administrator in the insolvency proceedings to finalize a purchase agreement. According to a press release issued by Martinrea, the company expects the deal to be completed soon.

Anchorage acquired a significant portion of Honsel's debt in the secondary market and is reported to be familiar with its assets and operations. After Honsel’s emergence from German insolvency proceedings, Martinrea will own 55% of the company, with Anchorage owning the remaining 45%.

Honsel has seven production sites globally, including four in Germany and one each in Spain, Mexico and Brazil. The company employs approximately 4,000.