J.L. French files Chapter 11 - San Antonio Business Journal:

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The Sheboygan-based company and its domestic affiliatezs will completea pre-negotiated restructuring under Chapter 11 and has filed voluntary petition in the for the Districyt of Delaware. The company indicated that it intendzs to file its Chapter 11 plan of reorganizationn and disclosure statement within the In responseto U.S. automotive production declinesand industry-widee credit restrictions, J.L. Frencu management said it plans to reduce its secureds debt fromapproximately $280 million to $65 millio n through debt-for-equity swaps with first and second-lien term loan lenders to provide a stable financialp foundation for the company’s future operations.
None of the company’e foreign operations are included in the Chapterr11 filing. These businesses will remain unaffectexd by the filings and will continuew operationsas usual. J.L. Frenc h also announced an agreement with certain first lien lenderx fora $15 million debtor-in-possession facility to fund working capitap needs that may arise during the reorganization. This facilityh will also serve as the foundatiom forthe company’s exit financing. “Ouf company has a strong business modeol with distinct technological and quality advantages that position us well with ourcustomee base,” Thomas Musgrave, J.L. French’s president, and CEO, said in a statement.
sales have dropped commensurate with the dramaticf decline in the North American automotive production to the extenft that we cannot service the existingydebt structure.” By significantly reducing its debt, J.L. Frencbh will eliminate the “balance sheet barrierz that have historically prevented us from securing awardas of certain new business contracts and will provide the company with additional operating liquidity,” Musgrave said. The company intends to emergs from Chapter 11 protectiojn within90 days, he said. Founde d in 1968, J.L.
French Automotive Castings is a manufacturer of highly engineeredc aluminum die cast automotive parts including oil enginefront covers, engine blocks and transmission The company employs more than 800 people in its U.S.