DETROIT -- Venture Holdings Co. LLC filed for Chapter 11 protection with the U.S. Bankruptcy Court in Detroit on March 28, as part of a reorganization plan that will bring it new leadership while it struggles to regain its financial footing.
Joseph C. Day, the retired leader of Freudenberg-NOK GP and a lean-manufacturing champion for the auto industry, has taken over as CEO for Venture, of Fraser, Mich., assuming responsibility for its U.S. and foreign operations.
The company must restructure its operations in the wake of an insolvency filing by its German subsidiary, Peguform GmbH in May. That filing left it without access to that business' income. Venture has more than $400 million in long-term debts and has not made major payments to bond holders for months, winning approval to delay them while negotiations continued.
"We are filing for Chapter 11 protection as a vehicle to restructure Venture Holdings' debt in response to events at our European operations that have severely affected our liquidity," Day said in a March 29 statement. "This action is in the best interests of our customers, employees and creditors, as it will enable Venture to continue to operate as usual in all respects."
Venture has had extensive discussions with its lenders that will allow it to present the court with a plan of reorganization, the company stated. It expects to emerge from bankruptcy quickly.
The company posted more than $1 billion in worldwide sales last year, producing a variety of injection molded interior and exterior components and is a major supplier of bumper fascia in Europe and North America.
Rhoda Miel writes for Plastics News, a sister publication to Automotive News.