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Chassix Files Chapter 11, Plans Fast-Track Restructuring
Chassix Holding Inc., a Southfield, Mich.-based privately held supplier of automotive precision castings and machined parts, has filed for Chapter 11 bankruptcy protection as it implements a pre-negotiated restructuring.
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Chassix Holding Inc., a Southfield, Mich.-based privately held supplier of automotive precision castings and machined parts, has filed for Chapter 11 bankruptcy protection as it implements a pre-negotiated restructuring.
The $1.9 billion company, which is owned by Platinum Equity LLC, has arranged $250 million in debtor-in-possession financing. The restructuring plan also includes a debt-for-equity swap to reduce debt obligations.
Chasix blames its woes on a sudden surge in business that overwhelmed its production capabilities. It says equipment failures generated daily losses of $350,000 or more in the fourth quarter.
The two-year-old company makes suspension control arms, steering knuckles, transmission components, driveline yokes and wheel hubs. Its operations in Brazil, China, France, Mexico and Spain are not part of the Chapter 11 proceedings.
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