Collins & Aikman plans a sale of nine plastics facilities
Bankrupt automotive parts supplier Collins & Aikman Corporation may sell a "significant portion" of its North Ameri...
The two companies have signed a letter of intent (LOI) that includes nine facilities in the U.S., Canada and Mexico. In a press release, Collins & Aikman noted that the facilities employ approximately 3,500 people and manufacture products for all major North American automakers.
“This transaction will preserve a significant number of jobs, generate important recoveries for our creditors and represents a significant step toward confirmation of our Chapter 11 plan,” said the company’s chief restructuring officer John Boken in a released statement.
Collins & Aikman’s U.S. subsidiaries filed for Chapter 11 in May 2005. In November 2006, the company announced that it expected to sell its facilities, as a whole or in parts. At the time, former company president and CEO Thomas Macher noted that the sale of Collins and Aikman’s facilities were necessary to ensure “maximum value” in light of deteriorating industry conditions.
The company says that it will continue in its efforts to sell its remaining business operations.
Cadence Innovation is a relatively new company that has over 4,200 employees at 17 facilities in the U.S., Hungary and the Czech Republic.
Additional information about the bid will be made available when Collins & Aikman files a sales motion with the bankruptcy court for a hearing.