Noble International and some of its US subsidiaries yesterday (15 April) filed for Chapter 11 bankruptcy protection, as a result of declining sales volumes and a frozen credit market. Noble’s European, Asian and Mexican affiliates were not included in the filing.
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Noble is the world’s largest supplier of laser-welded blanks and primarily serves the automotive industry.
In a statement the company said that, since late February, it had relied on finance from its customers to help sustain its North American operations.
But three customers of its US and Canadian facilities decided recently to take their business to other suppliers.
“As a result of these developments and the continued hardships confronting the automotive industry, [management] determined that Chapter 11 bankruptcy protection was in the best interest of the company, its creditors, stockholders and other interested parties,” the statement said.
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By GlobalDataChief executive officer Andrew Tavi added: “As with almost every supplier in this industry, Noble has experienced substantial volume reductions that have had a significant effect on its financial condition. Over recent months, our company has implemented significant cost savings initiatives and worked diligently with our customers and financial institutions in an attempt to regain solid footing in the face of dire circumstances within the industry. Unfortunately, the frozen credit markets and diminished volumes have limited our ability to effectuate a solution outside of bankruptcy.”
Noble said it expected that both the Chapter 11 protection and the debtor in possession financing it has negotiated with some customers would, if approved by the bankruptcy court, enable it to sell its remaining operations.
