American Remanufacturers Inc. filed for Chapter 11 reorganization Tuesday in a U.S. bankruptcy court in Delaware and said it is negotiating the sale of the company.
The axle, brake caliper and steering component supplier cited debt, pricing pressures, operating costs and foreign competition for the filing. The bankruptcy petition covers the company's U.S. operations but does not include its Canadian aftermarket operation.
American Remanufacturers said it plans to sell the company through open bidding. The company's senior lenders, led by Black Diamond Commercial Finance LLC, of Stamford, Conn., have made a bid.
American Remanufacturers, of Anaheim, Calif., said it does not expect an interruption in operations. It has secured debtor-in-possession financing of $15 million. The company has about 1,700 employees.