Spectra Premium Industries Inc. announced recently that it has sought protection under the Companies’ Creditors Arrangement Act (CCAA) before the Quebec Superior Court of Justice in order to provide the company with time to restructure its operations and its debt, while continuing normal operations. The company has initiated a corresponding filing in the United States under Chapter 15 to recognize and give effect to the Canadian filing.
“Our senior management team believes that this decision, difficult as it may be, remains the best option to move the organization forward with the greatest prospect of future success,” said Jacques Mombleau, president and CEO of Spectra Premium Industries Inc.
“Throughout 2019, we have taken aggressive measures to curtail costs, enhance productivity and develop new business segments ranking Spectra Premium among the industry leaders in North America. However, these efforts were hampered by challenging conditions in its Aftermarket division, particularly with the impact of tariffs imposed on Chinese products by the United States that disturb the supply chain and with difficulties encountered in the start-up of our new ferl tank factory in Trollhättan, Sweden. We are taking action today to ensure the continued success of our business,” Mombleau further added.
“We are conducting business as usual. All orders will continue to be shipped as agreed. We expect that Spectra Premium will emerge stronger and better able to compete as an advanced manufacturer.”
Spectra Premium will use its available credit facilities to provide adequate liquidity to operate while it restructures its operations and its debt.