Released on September 4, 2009

The U.S. Bankruptcy Court has confirmed the reorganization plan proposed by aluminum automotive components manufacturer J.L. French Automotive Castings Inc., Sheboygan, Wis., which entered Chapter 11 on July 13.

The plan is reported to reduce the company’s secured debt from approximately $280 million to approximately $50 million via debt-for-equity swaps with first and second lien term loan lenders.

“We met our commitment to complete the reorganization in record time and were able to gain confirmation of our plan in 53 days,” said Thomas Musgrave, J.L. French’s chairman, president and chief executive officer. “With the reorganization behind us, we can now turn our entire attention to our customers, who have been extremely supportive through this process, and continue our pursuit of making J.L. French a world-class diecaster.”

Under the plan, the company’s pre-bankruptcy first lien lenders will receive 95% of the common stock in the newly reorganized company, with the remaining 5% going to second lien term loan lenders. Holders of second lien term loan debt also will receive warrants for up to 15% of the common stock in the new company. General unsecured creditors, who voted in favor of the plan, will receive pro rata shares of a $120,000 pool. Two additional settlements, including a $1 million payout for Morgan Stanley’s interest rate swap claims, also will occur.

J.L. French designs and manufactures aluminum diecast automotive parts, including oil pans, engine front covers, engine blocks and transmission cases. The company employs more than 800 people in its U.S. operations.