Cooper-Standard Moves Closer To Emerging From Chapter 11
By Gary Molinaro | February 5th, 2010 | Category: Greensheet News | No Comments »The parent company of Cooper-Standard Automotive has filed a plan of reorganization that calls for the Novi, MI-based company to emerge from Chapter-11 bankruptcy protection under the ownership of its bondholders. Under the plan, which requires court and creditor approval, Cooper-Standard’s debtor-in-possession financing and pre-petition credit facility will be paid in full. And, general unsecured claims against the company and all of its debtor subsidiaries will receive payment.
In exchange, bondholders would get a 25-percent stake in a post-emergence Cooper-Standard, as well as rights to purchase an additional 50 percent. Under the plan, the company’s balance sheet will be significantly deleveraged with an estimated funded debt balance at emergence of $430 million. This represents a reduction of more than $700 million from pre-petition levels.
Certain bondholders have agreed to purchase 15 percent of the new common stock and provide a $245-million equity investment backstop to fund the Chapter-11 plan. “Obtaining a $245-million equity investment and filing our plan are significant achievements that pave the way for our expeditious and efficient emergence from bankruptcy,” said James McElya, chairman and CEO of the company.
