Intermet Files for Chapter 11 Reorganization
Intermet Corp. announced this week that it has filed for voluntary Chapter 11 reorganization with the U.S. Bankruptcy Court in the Eastern District of Michigan. Intermet’s European operations are not included in the Chapter 11 filing. Intermet said it filed for Chapter 11 in response to the unprecedented rise in raw-material costs, especially for scrap steel, in North America and Europe.
Intermet Warning Triggers Sell-Off, Bankruptcy is a Threat, Says Analyst
Add one more name to the list of struggling Detroit-area auto suppliers. Troy, Mich.-based Intermet Corp., a maker of metal brake and suspension parts, has warned Wall Street that it will lose tens of millions of dollars this quarter and needs a new credit agreement from its banks to avoid bankruptcy. Intermet blamed higher-than-expected steel costs and unspecified “operational problems” at some North American plants for its financial predicament.
Oxford to Skip Bond Payment, Cut Workers
Auto supplier Oxford Automotive Inc., beset by heavy debt, struggling North American plants and rising steel prices, is six months behind on reporting its finances to the SEC. The company plans to lay off nearly 200 people in Michigan and has been unsuccessfully shopping itself around for sale for several months, say automaker officials and supplier experts familiar with the company.
Oxford Automotive, Inc. Sells Mexican Plant and Amends Credit Agreement
Oxford Automotive, Inc. announced the closing of the sale of its manufacturing facility located in Ramos Arizpe, Mexico for approximately $40 million (including $3 million to be held in escrow). Pending investment of the net proceeds in capital assets, the company has applied the funds to reduce the amount currently outstanding under its revolving credit facility.
Treading a New Path
Goodyear Tire & Rubber Co. is hoping to make a huge splash with a new high-end line of all-season tires. The Akron, Ohio-based company will roll out its Assurance line this spring with its biggest advertising blitz in more than a decade. Goodyear is counting on the new tires to help deliver a turnaround after four years of disappointing sales.
Goodyear to Seek Millions in Loans
Goodyear Tire & Rubber Co., on the verge of posting its third straight annual loss, said Tuesday it plans to take on an additional $300 million in loans to fund its turnaround. The Akron, Ohio, company said it is also taking steps to follow through on a promise made last year to the United Steelworkers of America to complete a large bond sale. The sale is designed to improve the company’s strength and protect union jobs.
Midas Completes Restructuring
Midas said it has completed its restructuring plan successfully, and on schedule. In April 2003, Midas announced agreements with AutoZone in the U.S. and Uni-Select in Canada for distribution of Midas brand and other automotive parts to the 1,900 Midas shops in North America. Midas’ timetable to exit the parts distribution business was the end of fiscal 2003. In April 2003, Midas announced agreements with AutoZone in the U.S. and Uni-Select in Canada for distribution of Midas brand and other automotive parts to the 1,900 Midas shops in North America. Midas’ timetable to exit the parts distribution business was the end of fiscal 2003.