Oxford Automotive Inc. has won bankruptcy court approval of its plan to reorganize the company around its European business.
According to the plan, the Troy, Mich., supplier of structural, suspension and chassis components will liquidate its North American operations and regroup around Oxford Automotive Europe ApS, a Danish company.
Oxford filed for Chapter 11 bankruptcy protection on Dec. 7 in the U.S. Bankruptcy Court for the Eastern District of Michigan in Detroit. The move came 2½ years after Oxford emerged from its first Chapter 11 filing.
Oxford says that its European operations have been solidly profitable during the past few years and that it retains a solid book of business. Oxford Europe's newly established board will add chairman to the title of CEO Herve Guillaume, the company says.
Of Oxford's 10 North American plants, six have been sold. The other plants have been or will be sold or closed after Oxford emerges from bankruptcy court. No timetable has been given.
Spanish auto supplier Corporacion Gestamp last year agreed to buy Oxford's McCalla, Ala., plant for an undisclosed amount. That plant supplies the Mercedes-Benz Alabama plant.
The McCalla plant is seen as Oxford's best U.S. asset because it is new and has a $1.3 billion contract with Mercedes.