Entries tagged "autoparts"
Here's a lesson for those that tend to believe everything they read, including what's in press releases. GReddy Performance Products Inc. is operating under Chapter 11 protection, which may come as a surprise to anyone who might have read the auto parts maker's Sept. 9 press release. In that release, GReddy announced that its parent company, Japanese automotive performance products giant Trust Co., had filed for "Minji-sasei-hou" in Tokyo, which is the equivalent of a Chapter 11 filing in the U.S. Was that a problem for GReddy? As it crowed in the statement, hardly. ...
Exasperated with the Appaloosa Management LP-led group that pulled the rug out from under its bankruptcy exit, Delphi Corp. has sued to force them to come up with $2.55 billion they promised the auto parts maker. ...
Auto parts bankruptcies -- particularly those filed by small and midsized companies -- tend to follow the same formula. When a supplier begins struggling, it will sign both an access agreement and an accommodation deal with one or more auto-making customers. The accommodation allows the supplier to get financing from the customer under the proviso that it won't bolt to a new supplier for awhile, while the customer can feel secure about its supply chain not being broken because it literally gains access to the supplier's plants if things totally go south....
After finding willing participants in the syndicated market, bankrupt Delphi Corp. has increased its new debtor-in-possession financing package by $254 million to $4.354 billion....
