Chassix Holdings Inc. emerged from its Chapter 11 status on July 29, having earlier completed a pre-arranged restructuring of its assets, reducing debt and gaining new financial resources. The Southfield, MI-based foundry and machining holding company also named a new board of directors.
The group includes 23 plants in the U.S., Brazil, China, France, Mexico, and Spain, casting ductile iron and aluminum for chassis, brake and powertrain components. Among its customers are General Motors, Ford, Fiat Chrysler, Nissan North America and BMW AG, according to the bankruptcy court records.
“Today marks the completion of a restructuring and recapitalization that allows Chassix to move forward with a solid financial foundation from which we expect to be able to operate successfully and grow,” stated CEO Mark Allan. “We now have the financial flexibility to continue executing on our ongoing operational improvements and production enhancements so that we can better meet the significant demand for our products."
In March, Chassix filed for a bankruptcy claim, having missed scheduled debt-service payments twice on $525 million of bonds.
Chassix’ reorganization plan reduced its outstanding debt obligations and secured approximately $300 million in new exit financing, including $150 million from “prepetition” noteholders, and it secured significant long-term new business commitments and support from its largest customers.
The new directors include Fred Bentley, former president and CEO of Maxion Wheels; Jonathan F. Foster, the founder and managing director of Current Capital; Richard E. Newsted, a director of NIBCO Inc. and several other companies; Randal Klein, a portfolio manager at Avenue Capital Group and a director of several companies; Michael Kreger, a vice president at Oaktree Capital Management L.P. and a director of Tribune Media and Aleris Corporation.
Alan saluted the new board of directors as “a diverse group of individuals with a range of experience and expertise that will bring fresh perspective to Chassix.”
Chassix was formed in 2013 by Platinum Equity LLC, which merged its Diversified Machine Inc. and SMW Automotive LLC holdings into a global precision automotive casting and machining operations.