Supplier Contech LLC has arranged $7.2 million in debtor-in-possession financing for its bankruptcy.
Contech, which makes die-cast components, was the second major auto supplier to file for protection this year. A third supplier, Fluid Routing Solutions Inc., filed for protection earlier today.
Eight companies filed for protection in 2008. So far this decade, at least 58 major U.S. suppliers have filed bankruptcy petitions, according to Automotive News research.
Contechs sales fell nearly 30 percent in 2008 to $222.8 million from $312 million in 2007, the companys court documents said. But the company filed bankruptcy last Friday after its lenders seized Contechs $11.5 million in cash. This caused the supplier to miss more than $5 million in payments to creditors.
The company had been spun off from SPX Corp. and sold in 2007 to Marathon Automotive Group LLC, a company formed by Marathon Asset Management LLC for about $146 million in cash.
Contech, of Portage, Mich., filed its bankruptcy petition in Detroit. It listed assets and debts of between $100 million and $500 million.
Reuters contributed to this report.