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Spectra Premium begins financial restructuring
Spectra Premium Industries Inc. has sought protection to restructure its operations and its debt, while continuing normal operations.
The Boucherville, Que.-based manufacturer of cooling systems, fuel delivery, ignition and engine management, climate control, and undercar components, has made application under the Companies’ Creditors Arrangement Act (CCAA) to the Quebec Superior Court of Justice.
It has also initiated a corresponding Chapter 15 filing in the United States, to recognize and give effect to the Canadian filing.
“Our senior management team believes that this decision, difficult as it may be, remains the best option to move the organization forward with the greatest prospect of future success,” said Jacques Mombleau, president and CEO of Spectra Premium Industries.
He said the company has taken “aggressive action” throughout 2019, to curtail costs, enhance productivity, and develop new business segments.
“However, these efforts were hampered by challenging conditions in its aftermarket division,” he said, “particularly with the impact of tariffs imposed on Chinese products by the United States that disturb the supply chain and with difficulties encountered in the start-up of our new fuel tank factory in Trollhättan, Sweden.”
He said today’s actions are intended to ensure the continuation of the business.
“We are conducting business as usual,” he said. “All orders will continue to be shipped as agreed. We expect that Spectra Premium will emerge stronger and better able to compete as an advanced manufacturer.”
Spectra Premium will use its available credit facilities to provide adequate liquidity to operate while it restructures its operations and its debt.
The court has appointed Ernst & Young Inc. to act as monitor over the business, with a website at www.ey.com/ca/spectra where further information on Spectra Premium’s financial restructuring will be posted.
Lavery de Billy LLP and Norton Rose Fulbright US LLP represent the company as outside Canadian and U.S. legal counsel, respectively.
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Thank you Mr. Trump! (sarcastic)
From a creditor stand point, I am not sure why anyone would want to keep this company afloat. Environmentalists, along with the standing government, and the Quebec government are doing all they can to destroy the oil and gas industry, and encouraging everyone to buy electric vehicles. This tells me Spectra will have few customers!
So, now the real story. Oil and gas (this means natural gas) is not going anywhere any time soon. This has been clearly pointed out by this magazine showing sales of electric cars and decline of ICE cars will meet at sometime during 2038. What is clearly missing in a lot of peoples perspective is ICE’s used in trucks, trains, ships (include boats here), generators, construction equipment, forestry equipment , etc. etc.
While I believe Spectra (properly managed) should enjoy a long life, with many industries using their products, these industries will be using petroleum products from overseas. Countries that do not have our Safety and Environmental well being in mind (including the USA).
I for one will use Spectra products and encourage others to support a fellow Canadian company. It would be nice if all Canadians supported Canadian industry and bought and used Canadian products, before buying overseas. We can change government thinking one vote at a time, so make your voice heard, and tell your representatives Canada first!
Keep flogging your stuff for pennies on Rock Auto! They did it to themselves…