Precision Parts International to Begin Winding Down Operations
Files Voluntary Chapter 11 to Assure Orderly Wind-down Process
PPI will Consider Asset Sales as Part of Filing
ROCHESTER HILLS, Mich., December 12, 2008: Precision Parts International, LLC ("PPI"), a leading designer and manufacturer of high-precision metal components and subassemblies, specializing in metal-forming process technologies, announced today that it has filed voluntary petitions under Chapter 11 of the Bankruptcy Code in order to facilitate an orderly wind-down of its business.
The Company said that today's filing comes after an exhaustive exploration of options for continuing the business including a sale of its operations.
"Today's actions are unavoidable," said Joe Lefave, President and Chief Executive Officer. "The current depressed conditions in the domestic auto industry, along with the continued tightening of credit markets created insurmountable hurdles that could not be overcome.
"PPI will continue to operate during the wind-down in order to ensure a successful transition for all of our customers and has obtained liquidity to pay suppliers and employees during this process," Lefave said. "Additionally, the company will be accepting offers for its assets."
PPI has obtained a commitment from General Electric Capital Corp. and Comerica Bank for up to $2 million in debtor-in-possession financing to support the wind-down. Additionally, the company will present several first day motions to the Court, including a request to continue paying employee wages and benefits and utilities.
PPI designs and manufactures complex, high-precision metal components that are integral to engine, transmission, brake, safety, and seating systems. The majority of PPI's manufactured products are considered "mission-critical" because they are mandatory in order for a complex assembly to function. PPI's proprietary technology and knowledge enable it to manufacture precision metal components that have high tensile strength, superior edge finishes, and dimensional accuracy with capabilities of better than 5-micron level precision for high volume applications.
The Company filed its petitions for Chapter 11 bankruptcy protection in Wilmington, Delaware.