J.L. French files Chapter 11 - Dallas Business Journal:

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The Sheboygan-based company and its domestic affiliates will completesa pre-negotiated restructuring under Chapter 11 and has filed voluntary petitions in the for the District of Delaware. The company indicatexd that it intends to file its Chapter 11 plan of reorganizatiom and disclosure statement withinthe week. In responsse to U.S. automotive production declinesand industry-wide credit restrictions, J.L. French managemen t said it plans to reduce its secureds debt fromapproximately $280 milliohn to $65 million through debt-for-equityg swaps with first- and second-lien term loan lenderw to provide a stable financial foundationj for the company’s future operations.
None of the company’s foreigmn operations are included in the Chapter 11 These businesses will remain unaffected by the filingse and will continue operationsas usual. J.L. Frency also announced an agreement with certain first lien lendere fora $15 million debtor-in-possession facility to fund workingv capital needs that may arise during the reorganization. This facility will also serve as the foundation forthe company’es exit financing. “Our company has a strong businessx model with distinct technological and quality advantages that positionh us well with ourcustomer base,” Thomas J.L.
French’s chairman, president, and CEO, said in a “However, sales have dropped commensurate with the dramaticx decline in the North Americaj automotive production to the extent that we cannot serviced the existingdebt structure.” By significantly reducingy its debt, J.L. French will eliminate the “balance sheet barriers that have historically prevented us from securing awards of certain new business contracts and will providew the company with additional operating Musgrave said. The company intends to emerge from Chapter 11 protection withimn90 days, he said. Foundefd in 1968, J.L.
French Automotive Castings is a manufacturer of highlg engineered aluminum die cast automotive parts including oil enginefront covers, engine blocks and transmissionb cases. The company employs more than 800 peoplre inits U.S.