Cadence Innovation (Troy, Michigan / USA; www.cadenceinnovation.com) has filed for Chapter 11 reorganisation in the US state Delaware. The automotive supplier said that escalating material costs and rapidly deteriorating income had led to the filing. Its US operations consist of six manufacturing plants and various support facilities, all located in Michigan and Indiana. European operations – in the Czech Republic and Hungary – are excluded from the reorganisation. Cadence has been actively engaged in an effort to divest both its North American and European based operations, and these activities will continue as it moves through Chapter 11.

During the process, the company expects to maintain current staffing levels at its plants and support facilities using debtor-in-possession (DIP) financing to supplement its working capital. “From day one, we have always prioritised the welfare of our employees and the quality and delivery needs of our customers. We will continue to manage the company in that fashion,” said Jerry Mosingo, president and chief executive officer.

Cadence Innovation has an annual turnover of USD 746m (EUR 506m) and employs around 4,200 people in the US, Hungary and the Czech Republic. It offers design, engineering, manufacturing, and assembly/sequencing solutions for interior and exterior components, systems and modules.