The filing was done with the US Bankruptcy Court in the District of Delaware. The supplier's Canadian branch, Cooper-Standard Automotive Canada Limited, will also follow a similar path and will seek relief under the Companies' Creditors Arrangement Act.
"Restructuring the Company's balance sheet to align with the new automotive marketplace is the right decision at the right time," James McElya, Cooper-Standard CEO said when announcing thew filing. "Today's action will allow the Company to maintain its leadership position in the industry, preserve its business relationships and continue providing innovative technology to our customers. We expect to emerge from Chapter 11 a much stronger and more competitive Company."
Cooper-Standard announced it has come to an agreement with its lenders so that the latter will provide up to $175 million debtor-in-possession financing. The money will be used to set up a restructuring plan and pay normal expenses, wages and supplier payments.
Cooper-Standard holds at this point $1.1 billion in bank and bonds debts. The company hopes to reduce that to $350 million, as well as pursuing an exit financing facility of $100 million to $150 million.
Cooper-Standard Automotive produces body sealing systems, fluid handling systems and NVH control systems. It employs some 16,000 people worldwide and operates around 70 facilities. The bankruptcy process will not affect operations, as the supplier will continue 'business as usual."
Google News