Bankrupt auto supplier Collins & Aikman Corp. has a new leadership team, bringing in industry veteran Frank Macher as president and chief executive officer.
The Troy, Mich.-based interior specialist and injection molder has relied on Charles Becker as interim president since May, when it filed for Chapter 11 protection in U.S. Bankruptcy Court in Detroit.
Macher also has experience running a firm operating in bankruptcy. He was CEO and president of Federal-Mogul Corp. when it entered Chapter 11 in 2001, seeking protection because of liability concerns from its exposure to asbestos litigation. He left Federal-Mogul as chairman in 2004.
Macher recently was offered the chance to run a new business unit for Ford Motor Co. that would oversee more than 20 Visteon Corp. plants the automaker is taking into its fold while seeking a buyer, but he turned down that job a week after it was announced.
At C&A, he will run a company with nearly $4 billion in sales, but more than $2 billion in long-term debt, much of it stemming from a string of acquisitions in 2001.
C&A announced July 7 it also signed on Stephen Cooper as chairman and Leonard LoBiondo as a director. Both Cooper and LoBiondo come from Kroll Zolfo Cooper, which is serving as C&A's turnaround management team.
Cooper also is CEO of troubled firms Krispy Kreme Doughnut Corp. and Enron Corp.
Meantime, C&A secured additional financing from its customers to guarantee sufficient funds for continued operations.
The deal approved by the court July 7 will have the firm's six largest customers - General Motors, Ford, DaimlerChrysler, Toyota, Nissan and Honda - provide $165 million to keep things running smoothly. C&A will have to repay half of those funds.
The carmakers also will pay capital expenses for the next 90 days that are estimated at $140 million.