ALSIP, IL -- Universal Automotive Industries has filed a petition for Chapter 11 protection in the U.S. Bankruptcy Court for the District of New Jersey. Together with its wholly owned subsidiaries -- Universal Automotive, Inc., Universal Automotive of Virginia, Inc. and The Automotive Commodity Connection, Inc. -- Universal will be petitioning for debtor in possession financing to be provided by its principal secured lender, Wachovia Capital Finance Corp. (formerly known as Congress Financial Corp.). The financing will be sought to enable Universal to wind down its operations through either a sale of its operating assets or possibly a liquidation.

According to David Cesar, chief restructuring officer for the company, filing for bankruptcy protection was necessary for the company in order to continue its operations and seek to maximize value for its creditors and shareholders.

"All our facilities are currently open for business, and our employees are continuing to assist our customers and ship inventory," said Cesar. "We are in discussion with a prospective buyer who, if they purchase the company's business, could continue to serve customers and preserve jobs. We will know more about the course of the company's operations in the next several weeks. We would particularly like to thank our valued employees for their dedication during these times."

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