ROCHESTER HILLS, Mich. — Precision Parts International LLC (PPI) has filed voluntary petitions under Chapter 11 of the Bankruptcy Code in order to facilitate an orderly wind-down of its business. PPI designs and manufactures complex, high-precision metal components that are integral to engine, transmission, brake, safety and seating systems.
The company said the filing comes after an exhaustive exploration of options for continuing the business including a sale of its operations.
"Today’s actions are unavoidable," said Joe Lefave, president and chief executive officer. "The current depressed conditions in the domestic auto industry, along with the continued tightening of credit markets created insurmountable hurdles that could not be overcome.
"PPI will continue to operate during the wind-down in order to ensure a successful transition for all of our customers and has obtained liquidity to pay suppliers and employees during this process," Lefave said. "Additionally, the company will be accepting offers for its assets."
PPI has obtained a commitment from General Electric Capital Corp. and Comerica Bank for up to $2 million in debtor-in-possession financing to support the wind-down. Additionally, the company will present several first day motions to the court, including a request to continue paying employee wages and benefits and utilities.
The company filed its petitions for Chapter 11 bankruptcy protection in Wilmington, Del.
