DETROIT -- Fritz Henderson, who steered General Motors through its bankruptcy, has been named interim CEO of seating supplier Adient, succeeding chairman and CEO Bruce McDonald.
McDonald, 58, resigned from his posts effective immediately and John Barth, 70, current board director will serve as interim chairman, the company said in a news release.
Henderson, 59, replaced Rick Wagoner as GM's CEO in 2009 following the company's government-sponsored bankruptcy. Prior, he was a vice president of GM, where he had been since 1984.
McDonald had led the Adient since its spin-off from Milwaukee-based Johnson Controls Inc. in 2016. The company has struggled to maintain consistent profitability since spin off, reporting a $1.5 billion loss in 2016 before recovering to a net income of $877 million last year.
But financials have struggled again in fiscal year 2018, being dragged down by its money-losing seat structures and mechanisms division with its $3.3 billion in debt. In the second fiscal quarter of 2018, Adient reported a net loss of $168 million on revenue of $4.6 billion.
The company announced a restructuring this year which led to management changes in that division as well as reduced capital expenditures spending.
"Bruce and the board agree that now is the right time for a new leader with a fresh perspective to drive value in the next phase of Adient's life as a public company," Barth said in a news release. "Fritz [Henderson] brings the right leadership skills and operational experience to step in and immediately accelerate our transformation, providing the time to conduct an expeditious and thoughtful search for a new CEO."
The board has begun a search to identify a permanent CEO, the company said.
After leaving GM, Henderson was CEO of SunCoke Energy from its initial public offering in 2011 until he retired last year. In May, he joined Hawksbill Group -- a Washington consulting firm founded by some of his former GM colleagues -- as a principal.
Henderson has served on Adient's board since the company was established as a public entity in 2016. He will remain in the board while working as interim CEO.
McDonald will remain as an adviser to the CEO until Sept. 30, receiving his $1.5 million salary and $250,000 in relocation expenses, the company said in a filing with the U.S. Securities and Exchange Commission. Equity awards granted to McDonald prior to 2017 will continue to vest as part of his retirement package, though no new equity awards will be granted. McDonald's equity award in 2017, about $17 million worth, will be forfeited, the company said.
The suburban Detroit company said its operating performance was running behind plan, and forecast free cash flow of up to negative $100 million for fiscal 2018.
It forecast adjusted earnings before interest, taxes, depreciation and amortization of about $1.25 billion for the year. It had previously forecast adjusted EBITDA to come in at low end of a $1.40 billion-$1.45 billion range.
Adient stock fell 16 percent to $48.10 on Monday.
Automotive News and Reuters contributed to this report.