American Remanufacturers, a privately held company that produces remanufactured automotive components, on Tuesday (8 November) announced it is restructuring under Chapter 11 of the US bankruptcy code.
The filing in the US bankruptcy court in Delaware includes ARI’s US subsidiaries, but not its Canadian operation.
The company cited its debt structure at the time of filing, increased industry pricing pressures, higher operating and material costs, and foreign competition, as its reasons for filing.
The decision to file is a necessary step to stabilise and preserve value for ARI customers, suppliers and employees in the United States, according to a company statement.
“No interruptions in ARI’s manufacturing operations are expected, and it is anticipated that a stable supply of parts will reach its customers across the country,” the statement added.
As part of its restructuring ARI is negotiating the sale of the company and its assets, subject to bankruptcy court approval. The sale will be conducted through an open bid process and ARI’s senior lenders have made a bid, subject to higher and better offers.
ARI’s remanufactured automotive components half shaft axles, brake callipers, and steering components.
Its US-based subsidiaries include Car Component Technologies in Bedford, New Hampshire; Automotive Caliper Exchange in Anaheim, California; ATSCO Products of Phoenix, Arizona; and Ohio Caliperof Cleveland, Ohio.
The company’s Canadian operation, ABS Friction, located in Guelph, Ontario, produces aftermarket friction materials.
ARI employs approximately 1,700 people at its various locations.