Cadence has said that it isn’t walking away from Collins & Aikman (C&A) for good, despite a break-off in current negotiations over acquiring parts plants from the bankrupt firm.
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Cadence has issued a press release in response to a Collins & Aikman statement that said negotiations had broken off.
Automotive News reported that C&A later said it would rejoin negotiations with Cadence.
“We are please to learn that Cadence is still interested in pursuing a sale transaction and look forward to resuming negotiations as quickly as possible,” a C&A spokesman told Automotive News.
Cadence agreed to buy the plants for US$68m earlier this year. However, subsequent negotiations are reported to have stalled over C&A’s Hermosillo, Mexico, parts plant which is being purchased by investor Wibur Ross. Cadence is said to want that plant included as part of a deal.
Cadence CEO Jerry Mosingo, in the company’s press release, said Cadence’s continued interest in the Collins & Aikman plants “stems from our goal to provide continued support to our customers.”
Collins & Aikman has been in Chapter 11 bankruptcy protection for two years.
