Tower Automotive has been cleared by bankruptcy court in New York to complete its reorganisation plan and sell most company assets to an affiliate of private equity investor Cerberus Capital Management.
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The deal should close by the end of this month.
Tower filed for Chapter 11 protection on 2 February 2005, citing lower production volumes, rising steel prices and a complex and unsustainable debt load.
It has since closed or sold 16 manufacturing plants and consolidated production into existing facilities to improve productivity. It also negotiated settlements with all 10 US-based labour unions, sold non-core businesses and diversified its customer base with international automakers.
As a result, Tower expects more than half of the restructured company’s revenue will come from its international operations.
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By GlobalDataTower Automotive’s president and CEO Kathleen Ligocki said: “Now, backed by our new owners who have clearly demonstrated their commitment to the auto industry, we look forward to focusing on profitable growth with our customers around the world.”
