Proliance Files For Chapter 11 Bankruptcy Protection
Published:02-July-2009
By Staff Reporter
To address liquidity needs and preserve the value of its business
Proliance International, a manufacturer and distributor of aftermarket heat exchange and temperature control products for automotive and heavy-duty applications, and its US subsidiaries have filed voluntary petitions in the US Bankruptcy Court for the District of Delaware under Chapter 11 of the US Bankruptcy Code.
The filing does not include Proliance’s non US entities or operations. The bankruptcy filing listed about $133.5 million of liabilities, including around $40.1 million under Proliance’s secured credit facility.
In connection with its filing, Proliance has entered into a definitive agreement to sell substantially all of its North American assets as a going concern for $21.5 million, in cash, subject to adjustment, under a court supervised sale process, to Centrum Equities XV, LLC, a Tennessee based holding company which includes the Visteon aftermarket business.
The Visteon aftermarket business was spun off as an independent company in February 2008 from Visteon Corporation of Michigan and sold to Centrum Equities XV, LLC.
Wynnchurch Capital, a Chicago-based private equity firm, is Centrum’s financial partner in the Proliance transaction, said Proliance.
Charles E. Johnson, President and CEO, Proliance, said: "The filing and agreement we are announcing represents the culmination of an exhaustive process to evaluate all available options to address the Company’s liquidity constraints and is the only viable option after reviewing all alternatives to maximize the value of the Company for stakeholders, to provide the best possible opportunity for associates and to provide that our customers’ needs going forward were met."
