Troy, Michigan - Automotive interiors supplier Collins & Aikman Corp. has agreed with its secured lenders to emerge from bankruptcy protection by swapping debt for equity in a reorganised company.
In a bankruptcy court motion today, the Michigan-based firm said the reorganisation would save thousands of jobs.
The motion also asked the court to allow Collins & Aikman to defer interest payments between September and December so it could conserve cash to fund operations.
The supplier told a bankruptcy court on Tuesday that it planned to present the reorganisation plan by 31 Aug.
Collins & Aikman spokesman David Youngman said interest repayments amounted to about $7.2 million per month.
From Automotive News (A Crain publication)