DETROIT (Sept. 14)—Collins & Aikman Corp. has received a four-month extension to file its reorganization plan to exit Chapter 11 bankruptcy protection. The plan was due this week.
The supplier of automotive interiors said it needed more time because it was developing another plan for operating while in bankruptcy protection. Executives also are trying to negotiate price increases with their automotive customers.
The extended grace period means no suitors can present buyout plans for the next 120 days. Local rivals Lear Corp. and Plastech Engineered Products Inc. have expressed interest in all or some of Collins & Aikman´s operations.
Collins & Aikman, based in Troy, Mich., makes cockpits, interior trim and other parts for vehicles such as the 2006 Ford Fusion, Chrysler 300 and the Saturn Relay.
Collins & Aikman is expected to report Sept. 15 on its efforts to raise prices to customers. "Come October 1st, the customer will have a choice to sign the contracts or not," Collins & Aikman attorney Richard Cieri said.
The company is expected to exhaust about $82.5 million in customer financing this month. Collins & Aikman entered Chapter 11 in May after reporting net losses of $109 million in 2004.