NOVI, Mich. — Cooper-Standard Holdings, parent company of Cooper-Standard Automotive, has said it will utilize a 30-day grace period on interest payments scheduled for today on its 7 percent Senior Notes due 2012 and its 8-3/8 percent Senior Subordinated Notes due 2014 to allow the company and its sponsors to continue discussions with the company’s lenders to increase liquidity and improve its capital structure.
"The challenges facing the automotive industry today are unprecedented. While we have been implementing a range of initiatives to reduce costs, improve operational efficiency and preserve adequate liquidity, given current global economic and market realities, it is clear that we must evaluate our options to improve our financial position and help ensure that we can continue to be competitive for the long-term. While we will use the 30-day grace period to discuss options with our lenders and other parties, the discussions do not affect our commitment to continue providing our customers with reliable products and services, and we do not anticipate that the discussions will impact our ability to continue to pay our suppliers or our ability to conduct normal operations in the United States or overseas markets in the ordinary course of business," said James McElya, chairman and chief executive officer of Cooper-Standard.
The company said that the missed interest payments do not constitute an event of default under the bond indentures governing the notes and will not constitute a default unless the 30-day grace period expires without the interest being paid, absent an extension or forbearance of such payments.
