Interiors specialist Collins & Aikman Corp., which filed for US Chapter 11 bankruptcy protection in May, has received a takeover bid from Plastech Engineered Products Inc., a C&A spokesman told Reuters on Wednesday.
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Closely held auto-parts supplier Plastech offered around $1 billion for the company in a letter to the Collins & Aikman board, according to media reports this week, the news agency noted.
“We will evaluate all legitimate offers as we continue to develop our business plan and then act accordingly in the best interest of our creditors,” Collins & Aikman spokesman David Youngman reportedly said.
Reuters noted that, if the deal goes through, Plastech, a Dearborn, Michigan-based company that makes plastic parts for car interiors, would be acquiring a company about four times its size.
Plastech had sales of about $1.1 billion in 2003, compared with the $3.98 billion in revenue Collins & Aikman posted in the same year, Reuters said, citing business information company Hoover’s Inc.
The news agency noted that Collins & Aikman has told the bankruptcy court and customers providing its interim funding that it will present a business plan by August 31.
Collins & Aikman, based in Troy, Michigan, is one of the largest US auto suppliers to seek bankruptcy this year, as auto industry production cuts, rising raw materials costs and high debt from acquisitions have hurt the parts maker, Reuters added.
The report added that the company’s former chief executive, David Stockman, former budget director under President Reagan, resigned in May as the company said it faced significant liquidity issues – days later, the company filed for bankruptcy protection in Michigan district court.
