Southfield-based Federal-Mogul Corp. said today it is scheduled to emerge from Chapter 11 bankruptcy Dec. 27. On that date, Federal-Mogul will begin operating outside of bankruptcy court protection for the first time in six years.
Federal-Mogul filed for Chapter 11 bankruptcy in the U.S. and England in October 2001 to escape asbestos liabilities stemming from companies Federal-Mogul acquired in the 1990s.
Federal-Mogul's plan of reorganization was confirmed by the U.S. Bankruptcy Court on Nov. 8 and affirmed by the U.S. District Court on Nov. 14.
"We are delighted to have reached this significant milestone in Federal-Mogul's 108-year history of serving the global automotive industry," said Federal-Mogul chairman, president and CEO Jose Maria Alapont in a statement.
"We are confident about our future and wish to acknowledge the support and loyalty of our customers, suppliers and employees worldwide."
A maker of a variety of gaskets, spark plugs, pistons, rings and other auto parts, Federal-Mogul reported total 2006 sales of $6.3 billion. The parts supplier ranks No. 43 on the Automotive News list of the top 100 global suppliers with $3.48 billion in worldwide sales to original-equipment automotive manufacturers in 2006.