By Matt Jarzemsky and Mike Spector
Chassix Inc., a supplier of steering knuckles, control arms and
brake components to large auto makers, is working to finalize a
restructuring plan with creditors and seek bankruptcy protection as
soon as next week, said people familiar with the matter.
The Southfield, Mich., company, owned by private-equity firm
Platinum Equity LLC, is negotiating a prearranged bankruptcy plan
that would hand ownership stakes to creditors in exchange for
forgiving debt and rework contracts with big auto makers including
General Motors Co. and Ford Motor Co., the people said. The company
aims to have the plan in place before a bankruptcy filing with a
goal of streamlining its trip through court.
Chassix, which employs more than 4,000 people world-wide, is in
discussions with banks and bondholders for more than $200 million
in financing that would help it keep operating during bankruptcy
proceedings, some of the people said. The company hopes to finalize
a restructuring deal by March 4, when a grace period on a skipped
$17 million debt payment expires, the people said. Overall, Chassix
is looking to restructure about $525 million in bond debt, they
added.
The discussions are fluid and the contours of the deal could
change, people familiar with the talks said. A deal and subsequent
bankruptcy filing isn't assured, especially given the array of
parties involved, they said.
Chassix in a statement said it is "actively engaged in
constructive discussions with certain of our lenders and
noteholders, along with our major customers, to develop a
comprehensive plan" intended to improve the company's finances. The
company said it continues to operate normally and deliver parts to
customers.
Write to Matt Jarzemsky at matthew.jarzemsky@wsj.com and Mike
Spector at mike.spector@wsj.com
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