Collins & Aikman agrees to sell nine plastics facilities
Bankrupt automotive parts supplier Collins & Aikman Corporation (C&A) has signed a letter of intent (LOI) to sell a significant portion of its North American plastics business to Troy, Mich.-b...
Bankrupt automotive parts supplier Collins & Aikman Corporation (C&A) has signed a letter of intent (LOI) to sell a significant portion of its North American plastics business to Troy, Mich.-based Tier One supplier Cadence Innovation LLC.
The terms of the letter include nine facilities in the U.S., Canada and Mexico. The facilities employ approximately 3,500 people combined, 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,” John Boken, the company’s chief restructuring officer, said.
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 C&A’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.