European entities of Collins & Aikman under administration

01 Aug '05

3 min read

A global cockpit modules and automotive floor and acoustic systems leader Collins & Aikman Corporation announced its European companies have obtained a “group wide” Administration order pursuant to the jurisdiction of the English High Court in London. Simon Appell and Alastair Beveridge, amongst others, of Kroll UK have been appointed joint administrators of each of the companies.

The companies included in the filing are located in the UK, Austria, Belgium, Czech Republic, Italy, Germany, Luxembourg, Netherlands, Spain and Sweden and have approximately 4,000 employees in 24 facilities. Collins & Aikman's European operations are expected to continue in the normal course of business without interruption while the Administrators assess appropriate options.

Commenting on the Administration, John R. Boken, Chief Restructuring Officer, said “Over the past two months, they have discussed a number of alternatives with all of constituents, including major customers, in an effort to fashion a permanent solution to liquidity and balance sheet issues across Europe. In the absence of a permanent solution acceptable to all parties, it became evident that applying to the English Court for a group wide Administration order would be the best course of action to maximize value for both the European and US creditors.”

Mr. Boken added, “These actions will not impact ongoing reorganization efforts in the United States. Furthermore, the Company's operations in Canada, Mexico and Brazil are unaffected.”

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