From Associated Press
AKRON, OH — Shares of Collins & Aikman Corp. sank Friday after the money-losing auto supplier said two board members have quit and a subsidiary would postpone a debt offering because of adverse market conditions.
Shares of Troy, Mich.-based Collins & Aikman fell 42 cents, or more than 7 percent, to $5.15 Friday on the New York Stock Exchange.
The company has lost money three years in a row, and on Thursday reported a wider first-quarter loss. At the same time, the maker of instrument panels and other car components announced the departure of board members Charles Becker and Elkin McCallum.
Earlier this year, the company announced results of an investigation of business transactions between the company and members of its board. But the company said the resignations weren’t related to the probe.
On Friday, the company cited the sharp rise in Treasury market rates for putting off a debt offering by Collins & Aikman Products Co., which will instead seek to revise its credit lines. Treasury yields have climbed sharply recently as signs of economic recovery fuel speculation the Federal Reserve will raise a key interest rates to ensure a smooth recovery and keep inflation in check.
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