Cooper-Standard exits 10-month bankruptcy

ERJ staff report (AN)

Wilmington, Delaware. (Reuters) -- Cooper-Standard Holdings Inc emerged from a 10-month bankruptcy during which the maker of automotive systems shed $650 million of debt. The Company's Canadian subsidiary, Cooper-Standard Automotive Canada Limited, has also emerged from bankruptcy protection in Canada.

The company exited under the control of bondholders, who swapped their debt for equity in the reorganised company.

The company employs about 16,000 workers worldwide and makes door, body and sunroof seals, as well as systems that move fuel and brake fluid throughout a vehicle.

Cooper-Standard left court protection as the automotive industry has undergone a sharp reversal of fortunes from a year ago, when General Motors and Chrysler stumbled into Chapter 11 and dragged down numerous parts makers in their wake.

Cooper-Standard used $355 million in new equity, $450 million in new bonds and $125 million in new loans to pay off creditors and fund operations.

The new equity plan is being backstopped by funds associated with American Funds, Oak Hill Advisors, Silver Point Capital, TCW Group, Barclays Capital and Lord Abbett, among others.

The bankruptcy wiped out the investments of the previous co-owners: GS Capital Partners 2000 LP, a subsidiary of Goldman Sachs Group; and the Cypress Group LLC, a New York-based private equity firm, according to court documents.

From Automotive News (A Crain publication)

Press release from Cooper Standard