Lear Corporation has requested authority to file a consolidated list of the 50 largest unsecured creditors for itself and its affiliated Debtors (the “Top Unsecured Creditor List”) in lieu of a separate list for each of the Debtors. The largest unsecured trade payable on the list is $5,076,686.81 due to Johnson Controls, Inc.
Lear Bankruptcy – 24 Debtors and Petitions
Lear Corporation and 23 affiliated entities (”Debtors”) filed a petitions in Bankruptcy Court for the Southern District of New York for relief under chapter 11 of title 11 of the United States Code. Contemporaneously with the filing of their petitions, the Debtors filed a motion requesting that the Court consolidate their chapter 11 cases for administrative purposes only under the Lear Corporation case number 09-14326. The following are the names and case numbers (as available ) of the bankruptcy petitions.
Strict European Insolvency Laws Next Risk for US Automotive Suppliers
The bankruptcy case of Global Safety Textiles Holdings LLC (“Global Safety” and, together with the affiliates who filed with it, the “Debtors”) illustrates a growing risk for US automotive suppliers and OEMs – the potential failure of an international supply chain due to strict European insolvency laws.
Global Safety Textiles – Largest Unsecured Bankruptcy Creditors
Global Safety Textiles Holdings LLC (“Global Safety” and, together with 8 domestic and international debtor subsidiaries, the “Debtors”) has filed a consolidated list of the 30 largest unsecured creditors of the Debtors (the “Top Unsecured Creditor List”). This list is remarkable for the small size of the supplier pre-petition claims. The reasons for this phenomenon are explained in detail in the later post discussing certain substantive aspects of this case.
Global Safety Textiles Bankruptcy – Debtors and Non-Debtors
Global Safety Textiles Holdings LLC (“Global Safety” and, together with 8 domestic and international debtor subsidiaries, the “Debtors”) filed bankruptcy on June 30, 2009 in the Bankruptcy Court for the District of Delaware (lead case no.: 09-12234). The Debtors are part of International Textiles Group, Inc.’s (“ITG”) automotive safety group. As discussed in detail in a subsequent post, this bankruptcy case is about the non-debtor affiliates of the Debtors – so this post identifies both the Debtors and the foreign affiliated operating non-debtors.
DDJ Capital Derails Grede Foundries and Wayzatas Fast Track 363 Sale Strategy
DDJ Capital Management, LLC (“DDJ”) has thrown its money in front of the Grede Foundries fast track, 363 sale bankruptcy strategy. Grede Foundries planned a “fast-paced” section 363 sale to a new venture backed by the private equity fund Wayzata Opportunity Fund II, L.P. (“Wayzata”). DDJ has achieved a critical fist step in keeping the 363 sale from gaining momentum. DDJ has stepped in with DIP financing.
Proliance International – 30 Largest Unsecured Bankruptcy Creditors
Proliance International has filed a consolidated list of the 30 largest unsecured creditors for itself and its affiliated Debtors (the “Top Unsecured Creditor List”) in lieu of a separate list for each of the Debtors. Claims for creditors on the Top Unsecured Creditors List total almost $45 million. The amounts owed to each of the unsecured suppliers are all listed as trade debt. Likely because the Debtors provide aftermarket components, we only see one familiar name – Alcoa Mill Products is listed with a claim of $1,845,151. There ia also one huge claim of approximately $17 million of Enterex Industrial Co. Ltd., which claim is tagged as “disputed.”
Proliance International Bankruptcy – Debtors and Petitions
Proliance International, Inc. and 3 affiliated entities (”Debtors”) filed a petitions in Bankruptcy Court for the District of Delaware for relief under chapter 11 of title 11 of the United States Code . Debtors are manufacturers and distributors of aftermarket heat exchange and temperature control products for automotive and heavy-duty applications. The Debtors are seeking to administratively consolidate their chapter 11 cases under the case number Case No. 09-12278. The following are the names and case numbers of the Debtors.
Grede Foundries – First Day Bankruptcy Motions Offer Suppliers No Relief
Grede Foundries has filed 10 first day motions (3 procedural and 7 substantive). The 7 substantive motions are listed below. The one of special interest is item 6, which deals authorization of Grede to enter into accomodation agreements with customers. The presence of these agreements in an automotive supplier bankruptcy is a pretty good indication that there was a major supply disruption risk.
Grede has filed a 503(b)(9) procedural motion (which was not filed as a motion to be heard at the first day hearing) that seeks to preclude suppliers from filing 503(b)(9) motions and only permit the use of the general claims procedure. This motion affords suppliers no substantive relief in terms of accelerated payment of 503(b)(9) claims. The motion is actually anti-supplier. It seeks to postpone and procedurally restrict the exercise by suppliers of their rights under 503(b)(9).
Grede Foundries – Largest Unsecured Bankruptcy Creditors
Grede Foundries, Inc. (“Grede”) has filed a single debtor bankruptcy in the US Bankruptcy Court for the Western District of Wisconsin (Case No. 09-14337). Grede is one of the largest cast iron foundries in the United States. It produces ductile and gray iron and specialty metal parts for the automotive, heavy truck, off-highway, diesel engine and industrial markets.
Of the 20 largest claims of unsecured creditors, 16 claims are identified at trade debt.