Two automotive plastics suppliers operating out of bankruptcy court say they are gaining interest from prospective buyers for their companies. Novi, Mich.-based Key Plastics LLC reported May 5 it has prepared a memo "designated to attract potential investors for a sale or other restructuring transaction."
The custom injection molder, which entered Chapter 11 voluntarily in March with $353 million in debt, has had a "significant" amount of interest from potential buyers, said Chief Executive Officer David Benoit in a press release.
Key posted $550.4 million in total sales last year, up from $371.5 million in 1998, Benoit said. The company racked up extensive debts from a run of acquisitions, including the $113 million it spent to purchase automotive molder Foggini Group of Turin, Italy, in 1999.
Meanwhile, Breed Technologies Inc. of Lakeland, Fla., announced May 10 its special evaluation committee of the Board of Trustees is in the final stages of "evaluating exit strategies" for the company.
Those include the potential sale of all of Breed's North American operations, some of its divisions or a refinancing strategy that would allow it to emerge in some form.
Current Chairwoman Johnnie Cordell Breed and her potential partner, Ernie Green, have launched a bid to buy the business and make it the largest U.S. minority automotive supplier, said analyst Scott D. Upham, president of Ann Arbor, Mich.-based Providata Automotive.
Green, who is black, would own a majority stake of the steering wheel, air-bag and seat-belt maker. He also is chairman and chief executive officer for EGI Inc. of Dayton, Ohio, which made $125 million worth of suspension assemblies and components last year, including plastic air-bag covers.
Other established automotive suppliers have submitted bids for parts of Breed's holdings, Upham noted, including Delphi Automotive Systems of Troy, Mich., and Autoliv Inc., the Stockholm, Sweden-based worldwide maker of air bags, seat belts, steering wheels, inflators and sensors.
In September 1999, Breed's domestic businesses entered Chapter 11 voluntarily, listing total debt of $1.6 billion.