Collins & Aikman’s CEO resigns amid cash crunch

The chairman and CEO of Collins & Aikman Corp., David Stockman, quit last week amid mounting problems at the auto interior and trim supplier. Standard & Poor downgraded the auto supplier’s credit rating two notches to CCC, nine levels below investment grade. The company has fully used up its credit line and is relying on payments from customers to fund its operations.
The company said last week it had only $13.4 million in available cash and financing against a total debt of about $2 billion. The New York Stock exchange has suspended trading on C&A stock. Collins & Aikman operates numerous plants in Ontario and Quebec.