Articles tagged with: automotive suppliers

supplier bankruptcy recurring issues for bankruptcy creditors in the automotive sector

Stant Corporation Bankruptcy – Debtors and Petitions

Date: July 28, 2009 Author: burbageweddell

See the Stant Corporation Docsheet™ Report for subsequent selected docket entries in the Stant Corporation bankruptcy proceedings.

Stant Corporation and 5 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. The Debtors are leading developer and manufacturer of automotive fuel systems, fuel caps, radiator caps and thermostats. The Debtors products are sold in the U.S. and Canada through wholesale automotive parts distribution outlets and to automotive OEMs.

The bankruptcy looks like a classic 363 sale/stalking horse bidder transaction that will result in the clear split of supplier “haves” and supplier “have nots.” A critical vendor motion and attached sample trade agreement show that even for the supplier “haves” there are going to be some tough decisions.

How Did Lear Decide Which Suppliers are its Critical Vendors

Date: July 8, 2009 Author: burbageweddell

Lear Corporation and co-debtor subsidiaries (“Lear”) have estimated that they collectively have 1,600 vendors with outstanding prepetition claims. Lear has identified 214 of these vendors as “critical vendors”. As part of its first day motions, Lear has requested an order from the Bankruptcy Court authorizing Lear to pay up to an aggregate of $50,100,000 ($25,050,000 pursuant to an interim order and up to an additional $25,050,000 pursuant to a final order) of prepetition claims held by these 214 “critical vendors.” In the Lear bankruptcies and in other bankruptcies where similar motions have been filed, suppliers (and their lenders and stakeholders) repeatedly are asking: “What is a ‘critical vendor’ and what are the chances of my company being one?”

Lear Corporation – 50 Largest Unsecured Bankruptcy Creditors

Date: July 7, 2009 Author: burbageweddell

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

Author: burbageweddell

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

Date: July 5, 2009 Author: burbageweddell

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

Author: burbageweddell

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

Author: burbageweddell

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

Date: July 3, 2009 Author: burbageweddell

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

Date: July 2, 2009 Author: burbageweddell

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

Author: burbageweddell

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.

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Articles tagged with: automotive suppliers

Stant Corporation Bankruptcy – Debtors and Petitions

How Did Lear Decide Which Suppliers are its Critical Vendors

Lear Corporation – 50 Largest Unsecured Bankruptcy Creditors

Lear Bankruptcy – 24 Debtors and Petitions

Strict European Insolvency Laws Next Risk for US Automotive Suppliers

Global Safety Textiles – Largest Unsecured Bankruptcy Creditors

Global Safety Textiles Bankruptcy – Debtors and Non-Debtors

DDJ Capital Derails Grede Foundries and Wayzatas Fast Track 363 Sale Strategy

Proliance International – 30 Largest Unsecured Bankruptcy Creditors

Proliance International Bankruptcy – Debtors and Petitions