Venture Holdings LLC has lost its bid to keep its German operations out of bankruptcy proceedings, leading to doubts about the parent company's survival.
More than a third - and possibly more than half - of Venture's earnings came from the German facilities.
``A potential bankruptcy filing of Venture's domestic operations is possible,'' said Martin King, an analyst with New York-based Standard & Poor's credit rating group.
``They definitely are not going to survive in this form. Everything falls apart now.''
Venture, the Fraser, Mich.-based holder of automotive supplier Venture Industries and Peguform GmbH of BÃ¶tzingen, Germany, had fought the potential insolvency for the German facilities since May.
Four Peguform directors filed for bankruptcy without the parent company's approval, maintaining that the company could not guarantee payment to suppliers. German law holds managers criminally liable if they negligently delay to file for insolvency.
A court ruled Oct. 1 to begin insolvency proceedings. The Peguform facilities may end up being sold to a third party through the court proceeding. The ruling does not affect Peguform plants outside Germany, but those sites could be part of any sale.
Venture had a $14 million loan payment due June 3, but won concessions from debt holders to maintain the status quo until the German court acted. The company is unlikely to win any more delays, King said.
In an Oct. 1 filing with the Securities and Exchange Commission, Venture said it is continuing negotiations with ``customers, lenders and other constituencies to ensure the ongoing maintenance and stability of its operations, without disruption to its customers.''
Among the largest injection molders in North America, Venture had an estimated $440 million in injection molding sales last year out of $1.8 billion in total corporate sales.
As of March 31, Venture had total debt of about $877 million, according to Standard & Poor's.