DETROIT -- Auto parts supplier EaglePicher Inc. says it will transfer the company's $476 million in assets to newly formed companies, pay creditors with common stock and emerge from Chapter 11 this month.
The company won confirmation of its reorganization plan on Wednesday, June 28, in U.S. Bankruptcy Court in Ohio. If the court gives final approval to the plan, EaglePicher says it expects to emerge from Chapter 11 protection by July 31. The 163-year-old company filed for bankruptcy April 11, 2005, in Cincinnati.
EaglePicher, of Inkster, Mich., will reorganize into several divisions, grouped under a holding company. The supplier also wants to convert its $230 million in credit lines into financing to fund reorganization.
Creditors that hold the supplier's 9.75 percent debt notes will get common stock in the new holding company. The plan hinges on court approval of settlements with the EPA and several states.
"This is a very significant milestone toward completing EaglePicher's reorganization," said Stuart Gleichenhaus, interim CEO of EaglePicher in a statement. "We now have all the elements in place to complete our reorganization in the very near future. We look forward to continuing to serve our customers with high-value products from the EaglePicher group of companies."
The supplier has about 4,200 employees.
EaglePicher ranks No. 126 on the Automotive News list of the top 150 suppliers to North America with estimated North American original-equipment automotive parts sales of $293 million in 2005. The company supplies filtration systems, gaskets, brake shims and engine, suspension, driveline and transmission components.
EaglePicher has numerous non-automotive lines of businesses such as defense, nuclear, pharmaceuticals and plastics. The company generates about $685 million in total annual business, according to its Web site.
You may e-mail Greg Migliore at [email protected]