PORTAGE, Mich. Tier 1 automotive component and steep products supplier, Contech, said it has obtained interim financing and accommodation agreements with its lenders and key customers to assist with its previously announced restructuring efforts.
The financing agreement includes a DIP facility with a revolving loan commitment in aggregate principal amount of $7.2 million, with additional funds contributed by Contech’s key customers pursuant to an accommodation agreement.
The company filed a voluntary petition for relief under Chapter 11 on Jan. 30 due to unprecedented reductions in production volumes across the automotive industry and its key customers, which has severely impacted Contech’s operations.
The company will use the funds obtained through its DIP facility to fund normal business operations and to support its restructuring effort as part of its Chapter 11 filing.
“These agreements represent an essential milestone in Contech’s restructuring plan,” said Morris Rowlett, chief executive officer of Contech. “The continued support from our customers is a reflection of our employees’ commitment to quality and service.”