SOUTHFIELD, Mich. (Oct. 1)—In the face of mounting asbestos litigation, Federal-Mogul Corp. said it has filed Chapter 11 federal bankruptcy protection in the U.S. and United Kingdom to separate those liabilities from its true operating potential. The seal maker will continue operations during the proceedings, with no related job losses or plant closures expected and ·with the full support of its major customers and suppliers,Ã¶ it said in written release. In conjunction with the filings, Federal-Mogul said it has obtained commitments of up to $675 million in a new loan through debtor-in-possession financing from a group of banks led by J.P. Morgan Chase & Co. With U.S. Court approval, Federal-Mogul can use the new funds to meet the future needs and obligations of its normal business operations. ·This voluntary, but difficult, decision to file enables us to continue our operations with the same high level of commitment to our product quality and innovative technologies required to competitively serve our customers,Ã¶ said Chairman and CEO Frank Macher. He was appointed chairman of the company effective today, accelerating a previously announced successor plan at the company. Former Non-executive Chairman Robert S. Miller Jr. was named chairman and CEO of Bethlehem Steel Corp. Sept. 24, but he will remain on Federal-Mogul's board of directors.
Federal-Mogul files for Chapter 11 protection
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