Bankruptcy court approves first step of debt restructuring for car parts company with location in Batavia
A multinational car parts company with a location in Batavia has filed for reorganization under federal bankruptcy laws, but a spokesman for the company said there are no plans to eliminate jobs.
Earlier this week, a bankruptcy court granted Chassix Holdings, Inc., a series of "first day" motions that the company says will set the stage for recapitalization and ensure the company is able to continue normal business operations.
Chassix locally is at 4320 Federal Drive, Batavia.
The restructuring deal transfer ownership to the company's bondholders.
The company has been given access by the court to $205 million of debtor-in-possession financing. The new financing, according to the company, combined with cash generated by ongoing sales, will be available to Chassix to maintain operations and meet restructuring needs.
Tom Gores' Platinum Equity Advisers, Chassix's current equity owner, signed onto the proposal to cut company debt by 68 percent, from $680 million to $217 million, the company said in papers filed in U.S. Bankruptcy Court in Manhattan.
Chassix blamed a 2014 spike in demand for chassis components and powertrain products from customers like Ford, BMW and Nissan, saying its inability to keep up led to an "onslaught of quality issues and missed release dates" that increased manufacturing costs.
The Batavia plant produces assemblies, brackets, control arms, knuckles and tow hooks.
The number of people employed locally wasn't immediately available, but a company spokesman confirmed there are no anticipated layoffs in Batavia.
