NOVI, Mich. (March 24, 2010) — Cooper-Standard Holdings Inc., the parent company of Cooper-Standard Automotive Inc., has agreed to a plan to raise an extra $355 million in new equity.
The money will be raised through a rights offering among existing debt holders. The amended plan, the rights offering, and all related transactions have the full support of the Official Committee of Unsecured Creditors.
The new equity commitment agreement replaced the original commitment agreement, which was executed Feb. 1 and provided for a direct investment and an equity rights offering, totaling $245 million.
Under the amended plan, the company said its debt will fall to about $480 million. This represents a reduction of more than $650 million from pre-petition levels.
James S. McElya, Cooper Standard chairman and CEO, said the company is now positioned to emerge from bankruptcy in the near term on a consensual basis with a strong balance sheet while maintaining our leadership position in the industry.”
Cooper-Standard went into Chapter 11 protection in August 2009 with the aim of restructuring debts of $1.8 billion, following a 2004 buyout of the company from former parent, Cooper Tire & Rubber Co. The buyout was funded mainly by Goldman Sachs Group Inc. and private-equity firm Cypress Group.