Patel

Patel said he held a meeting with officials from Avenue Capital Group, one of the investment firms that is buying Milacron out of Chapter 11 bankruptcy.

U.S. Bankruptcy Judge J. Vincent Aug. Jr., approve the sale of Milacron to Avenue Capital and DDJ Capital Management LLC at hearing on June 26. That sale could close this month.

Ferromatik Milacron India Ltd. is not part of the bankruptcy, which covers only Milacron’s U.S. and Canadian operations. Patel said he has the right of first refusal to any sale of shares of Ferromatik Milacron India that Milacron holds — a position backed up by an Indian court.

Via e-mail, Patel said the June 30 meeting with New York-based Avenue Capital was “inconclusive.” He said he expects a follow-up meeting soon, after the sale of Milacron is final.

Ferromatik Milacron India makes more than 500 machines a year — mainly injection molding machines — at its factory in Ahmedabad. Patel said Milacron is the majority owner of the joint venture.

Patel said FMI is well capitalized in India, with low debt levels. He said the Patel family has a strong track record and respected name in the Indian plastics industry — so it’s important for his family to own the venture.

“Once this ownership change happens, FMI will become a stronger company and will independently grow rapidly,” Patel said in the e-mail. It is my every intention to buy [Ferromatik Milacron India].”

This is not Patel’s first effort to buy Milacron’s share of the joint venture. In May, Patel filed an objection to the bankruptcy court’s bid procedures. He said the sales process was unfair to parties seeking to buy parts of the company. He also wanted the bid procedure modified to recognize his family’s right of first refusal to any sale of the Ferromatik Milacron India.

At the time, Judge Aug allowed the sale of Milacron to Avenue Capital and DDJ Capital to move forward, adding that nothing in his order affects the Patel family’s rights under Indian law.