Automotive parts maker Cooper-Standard Holdings Inc filed for Chapter 11 bankruptcy protection on Monday, saying it could not repay its debt amid a drop in U.S. auto sales.
The maker of auto body sealing systems and fluid handling systems said it had outstanding debt of about $1.17 billion.
"As a result of the severe downturn in the automotive industry and the accompanying decrease in production volumes, the company is overleveraged," Cooper-Standard said in court filings.
Cooper-Standard has received a commitment for $175 million in debtor-in-possession financing, which will help fund operations while it restructures in bankruptcy court. The Novi, Michigan, company has a commitment for an additional $25 million in the form of a standby uncommitted single-draw term loan facility.
The financing is subject to court approval.
Cooper-Standard, which employs about 16,000 worldwide, makes door, body and sunroof seals, as well as systems that move fuel and brake fluid throughout a vehicle.
