DETROIT -- Cooper-Standard Automotive Inc. was flagged today by Standard & Poors as yet another Tier 1 auto supplier facing a potential Chapter 11 filing.
The suburban Detroit suppliers parent company, Cooper-Standard Holdings, said Monday that it had skipped bond interest payments as is working with lenders to boost liquidity and revamp its capital structure.
The skipped payment, while not yet considered a default, becomes a default if the company does not make the payment within a 30-day grace period.
But S&P voiced doubts.
We are not confident that Cooper-Standard will make the payments within the grace period, S&P credit analyst Nancy Messer said in a statement. The company might pursue a distressed exchange or file for bankruptcy under Chapter 11.
Cooper-Standard CEO James McElya said Monday that he does not expect the companys efforts to revamp its capital structure to affect its customer relationships or the companys ability to pay suppliers.
Other publicly traded suppliers have faced or are facing similar situations.
Visteon Corp. skipped a bond interest payment in February but made the payment within its 30-day grace period in early March. The company later filed Chapter 11.
Lear Corp. skipped a bond interest payment last week while it pursues a capital restructuring. The worlds second-largest seat maker is facing a potential bankruptcy filing if it doesnt win concessions from lenders and debt holders.
So far in 2009, at least eight suppliers tracked by Automotive News have filed for bankruptcy. More than 60 have filed over the past decade. The count doesn't include many smaller suppliers.
Cooper-Standard ranks No. 38 on the Automotive News list of the top 150 suppliers to North America with sales to automakers of $1.23 billion in 2008.