http://www.thestarpress.com/article/...EWS01/12270322


MUNCIE -- The insolvency of auto-supplier Delaware Machinery & Tool
will cost local government units $845,512 in unpaid taxes -- but at
least they'll get more than $200,000.

When the metalworking business was sold this month to Cleveland-based
Dan. T. Moore Co. for $12.7 million, the sale proceeds were not enough
to pay all of the company's secured creditors, which are owed about
$26 million, let alone the unsecured creditors, owed another $2.5
million.

Delaware County Treasurer John Dorer's attorney, Joseph Hunter, filed
a motion in court claiming the company, which was placed in
receivership, owed $845,512 in personal property taxes, interest and
penalties for the years 2009 and 2010.

But Delaware Circuit Court 1 Judge Marianne Vorhees agreed with
Indianapolis attorney David Powlen, representing the court-appointed
receiver. Powlen said that personal property taxes on equipment and
inventory -- unlike real property taxes on land and buildings -- do
not become a lien when assessed.

"The county has a statutory lien on the real estate for the property
taxes, but the personal property taxes were an unsecured lien, (and)
no unsecured creditors received funds," Hunter told The Star Press.

Still, Dorer said the county stands to collect $211,512 in unpaid real
property taxes from the sale proceeds. That will be distributed to
local taxing units, such as the city, county and schools.

"I'm glad it sold, and I'm glad it's still in business," Dorer said.
He added the company is calling back employees during its rebound
under the receiver and the new owner.

Employment at Delaware Machinery, just south of downtown, has been
climbing since receiver Dennis Kebrdle was appointed. Employment is
now approaching 90, compared to 61 in February.

Moore renamed the Muncie company Delaware Dynamics LLC.

Delaware Machinery has been in business more than 60 years, and is a
major tooling supplier for domestic and international auto makers. The
firm's comprehensive capabilities enable it to design, manufacture and
test customer tooling, some of which weighs more than 200,000 pounds.

A related company, B&B Tool and Die, was sold earlier for about $3
million. Combined with the sale of Delaware Machinery, that still
means creditors will lose $13 million or so.

Dan T. Moore Co. employs 350 people and has annual sales of $110
million. It produces proprietary products including chemicals to
improve auto tires, inserts for advanced combat helmets and heat
shields for autos. It also owns a marina, a restaurant and five tons
of iron ore in Tennessee. It is developing conversion kits for cars to
run on either natural gas or gasoline.

The 2008 global financial downturn that included the automotive
industry contributed to Delaware Machinery's inability to pay its
creditors.

On Mon, 27 Dec 2010 23:25:31 -0600, Boris Kapusta
wrote:

It also owns a marina, a restaurant and five tons
of iron ore

Huh????? 5 tons of iron ore is worth..what...$400?


"I'm a lifelong devout atheist, and I'm very tolerant of other beliefs..."
Pete C.

Gunner Asch wrote:
On Mon, 27 Dec 2010 23:25:31 -0600, Boris Kapusta
wrote:

It also owns a marina, a restaurant and five tons
of iron ore

Huh????? 5 tons of iron ore is worth..what...$400?


:-) I was wondering whether they counted the rolls
of toilet paper too.
...lew...