DETROIT — According to a recent news reports, ASC Inc., the Southgate, MI, specialty automotive manufacturer formerly known as American Sunroof Co., last week filed for reorganization under Chapter 11 of the U.S. bankruptcy code. The company reports owing millions of dollars to hundreds of creditors. The biggest creditors include significant Detroit companies, such as Bridgewater Interiors, which is owed almost $550,000, and American Axle & Manufacturing Holdings Inc., which is owed more than $350,000.
The largest single creditor is Whitehall Industries, which is listed in the bankruptcy filing under a Chicago address and is owed $703,325.54. The City of Oak Park is also listed as being owed more than $210,000. Earlier this year, Crain’s Detroit Business reported that ASC was selling off presses, paint lines and other equipment related to its specialty manufacturing business, which had made GM’s Chevrolet SSR pickup car.
However, the news isn’t entirely dire. On Friday, it was announced that Hancock Park Associates, a private-equity firm based in Los Angeles, has signed a definitive purchase agreement to purchase the automotive "open air" roof-systems unit and the automotive design-services unit of ASC from its owner, American Specialty Cars Holdings LLC. Terms of the transaction were not disclosed.
As a condition of the asset-purchase agreement, the sale of the two ASC units is to be conducted under the provisions of Chapter 11, Section 363, of the U.S. Bankruptcy Code. As part of the filing, ASC has arranged for debtor-in-possession (DIP) financing from Comerica Bank, which will be used by ASC to fund normal business operations.
