Auto supplier Gissing enters Chapter 11, owes Tesla $13.3M

Bingham Farms, Mich.-based auto supplier Gissing North America LLC has filed for Chapter 11 bankruptcy protection with up to $100 million in liabilities, including $13.3 million owed to Tesla Inc.

Under an agreement pending approval, however, the electric vehicle behemoth and other customers, including General Motors Co., have agreed to keep the supplier afloat until it is sold.

Gissing supplies acoustic components to automakers, including thermoformed panels. It filed for bankruptcy Aug. 8 in the U.S. Bankruptcy Court of the Eastern District of Michigan in Detroit.

The company, a subsidiary of a Chinese automotive supplier, manufactures interior acoustic and cargo management systems for Tesla, GM, Ford Motor Co., Stellantis NV and Toyota Motor Corp.

Under an agreement signed July 18, Tesla, GM, Toyota and BMW agreed to fund Gissing's projected liquidity shortfall of more than $14 million until the sale of the debtor's assets, expected by Oct. 31, according to the filing.

Gissing said it has between $50 million and $100 million in assets and the same range of estimated liabilities. It has 200-999 creditors, including hundreds based in Michigan, according to the filing.

Among the 700 pages of creditors, Tesla is by far the largest with a $13.3 million claim, of which $3.5 million is unsecured.

Other creditors include Techstyles Inc., HQS Automotive International, Alta Equipment Co., BASF Corp., Blue Cross Blue Shield of Michigan, Bodman LLP, Borgwarner Inc., Central Transport and Tri-Chem Corp.

Owned by Wuxi Gissing Auto Parts Co., the U.S. subsidiary was formed in 2016. Wuxi operates 14 plants around the world, including three in the U.S. In addition to its headquarters in Bingham Farms, it operates an engineering center in Wixom.

The company employs 332 employees in the U.S., just 41 of whom are full-time, direct hires, according to the filing.

It is unclear how many employees Gissing has in Michigan.

The company could not be reached for comment.

Gissing's revenue last year was $110 million, and its projected sales for this year are $136 million, according to bankruptcy documents.

Last year, Gissing announced plans for an $18.7 million investment and 116 new jobs at a plant in Greenville, S.C., according to a news release from the Greenville Area Development Corp. Those plans fell through after Gissing lost an OEM contract, according to the bankruptcy documents.