SOUTHFIELD, Mich. (Sept. 28) — Federal-Mogul Corp. has reached an agreement with the United Kingdom Administrators of its affiliates that will allow the Southfield-based automotive parts maker to retain those businesses.
Jose Alapont, Federal-Mogul president and CEO, said the agreement is a "major step" toward the company´s emerging from bankruptcy protection in a manner that separates its operating potential from its asbestos liabilities.
As part of the deal, Federal-Mogul retains the businesses and other assets of the affiliates in exchange for monetary amounts and reserves that will be used by the Administrators to distribute to U.K. creditors. The agreement has been filed in U.S. Bankruptcy Court in Delaware and is subject to various approvals.
Federal-Mogul in October 2001 filed for bankruptcy in the U.S. and administration in the U.K.