US: Lead bidder eyeing C&A soft trim unit
Collins & Aikman has selected a lead bidder in its proposed sale of its North American automotive flooring and acoustic components business.
In a statement C&A said it had received a number of offers and had entered an exclusivity agreement with the lead bidder while they complete due diligence and negotiate a definitive agreement in the coming weeks.
The offer will be subject to overbid through a bankruptcy court monitored auction process. Details of the bid, will be available after a bankruptcy court hearing expected in January.
"We are extremely pleased with the level of interest shown in purchasing our businesses," said John Boken, Collins & Aikman's chief restructuring officer.
"The potential sale of the soft trim business unit as a going concern would generate important recoveries for our lenders, result in a valuable addition to our buyer's portfolio and, most importantly for our employees, preserve a large number of jobs."
The soft trim business operates 14 facilities in the United States, Canada and Mexico, employs approximately 4,100 people and supplies all major automakers.
Collins & Aikman is continuing efforts to sell the majority of its remaining businesses that produce injection moulded interior components and convertible roof systems.