TROY, Mich. (May 18)—Cash-strapped interiors and trim supplier Collins & Aikman Corp. has filed for Chapter 11 bankruptcy protection from creditors, five days after former CEO David Stockman quit abruptly.
Collins & Aikman said it has a commitment to get as much as $300 million in financing from JPMorgan Chase & Co. to keep the business running.
The company said John Boken, of financial advisers Kroll Zolfo Cooper of New York, was named chief restructuring officer. The company also has hired law firm Kirkland & Ellis L.L.P. and investment bank Lazard to help with the restructuring. The company filed May 17 at the U.S. Bankruptcy Court for the Eastern District of Michigan in Detroit.
Collins & Aikman said it will keep all its plants running and will continue to pay employees and suppliers.
The company said recently it had only $13.4 million in available cash and financing. It expects to have available cash and financing of $15 million or less daily for the near future.
Before its bankruptcy filing, Collins & Aikman had scheduled debt interest payments of $26.9 million on June 30 and $26.7 million on Aug. 15. The company's total debt is about $2 billion.