The crisis in the US automotive industry has claimed another victim. Supplier Collins & Aikman (C&A, Troy, Michigan / USA; www.colaik.com) has filed for protection under the US Chapter 11 bankruptcy code. The filing, which C&A said reflects “mounting liquidity issues and the need for immedi- ate cash to fund operations,” applies to the corporate parent and “substantially all” its domestic subsidiaries.

The company that with the 2001 acquisition of the former Becker Group and Textron Trim declared itself on the road to becoming a “mega tier 2 supplier,” said JP Morgan Chase bank has agreed to provide up to USD 300m in funding to meet operating expenses, including an interim sum of USD 150m. Worldwide operations are expected to “continue without interruption,” as the bank also has agreed to provide financial support for non-U.S. operations.

With sales of nearly USD 4 bn, a workforce of 23,000, more than 100 technical centres, sales offices and manufac- turing sites in 17 countries, C&A regards itself as a global leader in cockpit modules and automotive floor and acoustic systems, as well as a leading supplier of instrument panels, automotive fabric, plastic-based trim and convertible top systems.

Like Tier 1 auto manufacturer spin-off Delphi, Collins & Aikman last March had to admit accounting irregularities. In early May, CEO David Stockman resigned – among other reasons due to accumulated debt of more than USD 2 bn. C&A said the protection afforded by the Chapter 11 process will allow the company to “gain immediate liquidity, continue operations in the ordinary course and focus on maximising the value of the business” while leveraging a restructuring programme to regain profitability.