DETROIT -- Auto parts supplier EaglePicher Corp. plans to emerge from Chapter 11 reorganization as a new company on Tuesday, Aug. 1, with less debt and new leadership.
The company, which makes steering knuckles, pump components and numerous other parts, also has new ownership led by a pair of financial players.
EaglePicher's plan to exit from bankruptcy was made possible recently by its conversion of debtor-in-possession financing to exit financing, a condition required by Judge Vincent Aug of the U.S. Bankruptcy Court for the Southern District of Ohio in Cincinnati.
Turnaround specialist David Treadwell, who will become CEO, told Automotive News he was looking forward to operating the new company, which is expected to post total 2006 sales of $600 million.
"Juggling debt and looking at strategies to stave off bankruptcy does not allow you to focus on operations," Treadwell says. "Now we can have a laserlike focus on operations." He has been COO of the company since November 2005.
Treadwell will operate the company with Don Runkle, who retired as vice chairman of Delphi Corp. in June 2005. Runkle becomes nonexecutive chairman.
EaglePicher is the latest parts maker to be taken over by financial players who snap up a company's public debt and then swap it for equity ownership after the company emerges from bankruptcy court. The new owners are Angelo Gordon & Co. and Tennenbaum Capital Partners LLC.
The company formerly was known as EaglePicher Inc. Its Chapter 11 filing in April 2005 was its second since January 1991. The reorganization filing followed a significant drop in business at several units. The troubles were compounded by more than $500 million in debt. The debt now stands at $225 million. The company's first filing came after taking on about $2 billion in asbestos-related claims.
EaglePicher is based in Phoenix. It is a collection of seven companies, including two automotive groups.
You may e-mail Robert Sherefkin at [email protected]