WILMINGTON, DE — American Remanufacturers, Inc. filed for Chapter 11 protection from its creditors in bankruptcy court in Wilmington, DE, on Monday. In the filing, ARI listed assets of $10 million to $50 million and debts of more than $100 million. The filing includes ARI’s U.S. subsidiaries, but not its Canadian operation. The company has said it does not anticipate any interruption in customer service.
The auto parts supplier cited its debt structure, increased industry pricing pressures, higher operating and material costs and foreign competition as its reasons for filing. The company is seeking court approval to sell itself for about $30 million, subject to higher bids at auction.
According to the Associated Press, some of the lenders, led by units of Black Diamond Commercial Finance LLC, agreed to provide a $31 million debtor-in-possession loan, provided the company put itself up for auction. American Remanufacturers owes its senior lenders about $56.8 million, according to court papers.
American Remanufacturers employs approximately 1,700 people at its various locations.
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