PUBLIC NOTICE OF PROSPECTIVE CHAPTER 11 FILING AND 363 SALE PROCESS: Aluminum, Brass & Bronze Foundry and Machine Shop

Potential Acquisition Opportunity: Aluminum, Brass & Bronze Foundry and Machine Shop (~30 Employees)

COMPANY OVERVIEW
The Company is a vertically integrated foundry and machine shop based in the Upper Midwest, with an operating history of well over a century. It specializes in aluminum, brass, and bronze sand casting alongside in-house machining, serving marine, industrial, agriculture, construction equipment, automotive, and aerospace/defense end markets from a single large-format facility. The Company holds valuable Women-Owned Small Business (WOSB) and HUBZone certifications along with AS9100, ITAR registration, and CMMC Level 2 self-certification, positioning it for continued diversification into aerospace and defense manufacturing.

• Vertically integrated aluminum, brass & bronze foundry and machine shop with 100+ years of operating history
• Women-Owned Small Business (WOSB) and HUBZone certified; AS9100, ITAR-registered, CMMC Level 2 self-certified
• Asset-heavy balance sheet — owned real estate, decades of foundry/machining equipment, and current inventory provide continued operating assets
• Legacy customer concentration (~80% of historical revenue) is winding down; diversification into defense/industrial customers underway
• Contemplated Chapter 11 process to clear a legacy multiemployer pension withdrawal liability via a Section 363 sale
• Indicative DIP facility of ~$1.0M, sized to current A/R and inventory

CURRENT SITUATION
The Company’s revenue has historically been concentrated with a single global heavy-equipment OEM customer, which at its peak represented roughly 80% of sales. That customer has substantially wound down its purchasing over the past year, driving a steep revenue decline (from a recent peak of roughly $21 million to a current run rate well under half that level) and a corresponding reduction in headcount. The Company’s existing asset-based lender has recently tightened its borrowing base, further constraining liquidity. Separately, the Company participates in a legacy multiemployer pension plan; the associated withdrawal liability (estimated $7 million, subject to a formal actuarial determination) has to date prevented a going-concern sale or partnership outside of a bankruptcy process, since no third party has been willing to assume it.

OPPORTUNITY
Newpoint Advisors Corporation, acting as financial advisor, is conducting preliminary, confidential outreach on behalf of the Company to gauge interest from parties who could (i) provide debtor-in-possession financing in connection with a contemplated Chapter 11 filing, and/or (ii) serve as a stalking-horse or going-concern buyer of the Company’s operating assets pursuant to an anticipated Section 363 sale. The Company’s asset-heavy balance sheet — employees with decades of foundry work and machining equipment plus related real estate — provides a hard collateral base uncommon among smaller distressed manufacturers. A DIP facility is expected to fund operations through an estimated 90–120 day sale process, clearing the path for a buyer to acquire the business free and clear of the pension obligation. A DIP lender who is also positioned to serve as the eventual buyer is of particular interest, as it aligns financing economics with a clean, expedited exit.

This is a preliminary sounding to confirm market appetite prior to any filing — no bankruptcy petition has been filed at this time.

FINANCIAL SUMMARY

*FY2024 revenue is a management estimate, not independently confirmed. **FY2026 YTD reflects year-to-date results through July 2026 per management reporting; FY2025 figures are unaudited, company-prepared combined financial statements.

BALANCE SHEET & COLLATERAL SNAPSHOT

NOTE: The Company’s financial information is company-provided and has not been audited or independently verified by Newpoint Advisors Corporation and is subject to a prospective lender’s or purchaser’s due diligence. The Company is not currently the subject of a bankruptcy proceeding; the Chapter 11 filing, DIP financing, and sale process described above are contemplated but not yet commenced and are subject to change. Indicative sizing and recovery information are for discussion purposes only and do not constitute a valuation opinion, commitment to lend, or offer of any kind. The Company’s identity is being withheld at this preliminary stage; it will be disclosed to qualified, interested parties under a non-disclosure agreement.

For more information contact: Peter Bendoris, [email protected]

Newpoint Advisors Corporation is a North American financial advisory firm dedicated to improving troubled and financially underperforming small to lower middle market businesses. Our collaborative, process-oriented approach allows us to deliver objective solutions for a fixed fee and on a fixed timeline. Newpoint Advisors believes in a cooperative team approach: we work with our clients to educate them in ways that maximize profitability and growth. Our tool kits provide a tangible deliverable to assist in monitoring borrowers.