U.S. auto supplier Key Plastics files for Chapter 11

U.S.-based auto parts supplier Key Plastics LLC filed for Chapter 11 bankruptcy protection late in December. The company also submitted a pre-packaged reorganization plan.

The company, which specializes in door handle assemblies, said it had secured $20 million financing to continue operating in bankruptcy, and promised that the company’s creditors and supplier base wouldn’t be adversely affected by its restructuring initiative.

In a statement, the company said it expects its reorganization to be confirmed later this month. Key Plastics has been adversely affected by a downturn in the automotive sector.

“The global automotive industry is going through a period of historic change, and Key Plastics is taking the necessary steps to position the company to succeed,” said company president and CEO Ralph Ralston in a statement.

In addition to the company’s various plants in the U.S., Key Plastics also owns a plant in Markham, Ont. The Novi, Mich.-based company purchased Markham’s Acco Plastics Ltd. in 1998.