Shiloh Industries, Inc. Receives Court Approval of Bidding Procedures

Shiloh Industries, Inc. (NASDAQ: SHLO) (the “Company”) an environmentally focused global supplier of lightweighting, noise and vibration solutions, today announced that it has received approval from the U.S. Bankruptcy Court for the District of Delaware for the bidding procedures and stalking horse protections in connection with its previously announced stock and asset purchase agreement with Grouper Holdings, LLC (“Grouper”), a subsidiary of MiddleGround Capital LLC (“MiddleGround”). The Company also received final approval for a number of its “First Day” motions related to the Company’s voluntary Chapter 11 petitions filed on August 30, 2020.

Under the approved bidding procedures, interested parties must submit qualified bids to acquire the Company no later than 5:00 PM ET on October 26, 2020. The court-supervised auction is scheduled to be held on October 29, 2020. A final sale approval hearing is expected to take place on November 10, 2020, with the anticipated closing of the successful bid to occur before the end of the year, subject to receipt of applicable regulatory approvals and the satisfaction or waiver of other customary closing conditions. Shiloh’s operations will continue throughout the sale process and the Company will continue to meet customers’ needs.

“The Court approvals received today represent an important milestone for our Company as we continue to work toward improving Shiloh’s financial position for the long term through this court-supervised sale process,” said Cloyd J. Abruzzo, interim chief executive officer of Shiloh. “We continue to take pride in serving our customers and meeting their needs as the automotive industry recovers from the COVID-19 pandemic. We appreciate the support of our customers, partners, and above all, our employees throughout this process.”

The Company also noted that it agreed to an adjournment of the Court hearing regarding final approval for the Company to access $123.5 million in committed debtor-in-possession (“DIP”) financing from its existing lenders, in order to provide the recently formed Creditors’ Committee sufficient time to review the proposed order. Shiloh continues to have sufficient liquidity to operate its business, with access to up to $18.1 million in DIP financing for which the Court previously granted interim approval.