Noble International Files for Chapter 11 Bankruptcy Protection
04/20/2009 - Noble International and some of its U.S. subsidiaries file voluntary petitions in U.S. Bankruptcy Court seeking relief under the provisions of Chapter 11 of the U.S. Code.
Noble International, Ltd. and some of its U.S. subsidiaries have filed voluntary petitions in U.S. Bankruptcy Court seeking relief under the provisions of Chapter 11 of the U.S. Code. Noble's European, Asian and Mexican affiliates are not debtors in the bankruptcy.
Noble International, the world's largest supplier of laser-welded blanks, primarily serves the automotive industry. The company also produces laser-welded tubes, roll-formed products and other steel components.
To help sustain its North American operations, Noble International has been relying since late February on financing arrangements from its customers. However, three of the company’s customers recently initiated plans to re-source their purchases of laser-welded products from the company's U.S. and Canadian facilities to other suppliers. These developments, along with the continued hardships confronting the automotive industry, led corporate leadership to determine that Chapter 11 bankruptcy protection was in the best interest of the company, its creditors, stockholders and other interested parties.
"As with almost every supplier in this industry, Noble has experienced substantial volume reductions that have had a significant effect on its financial condition,” said Noble International CEO, Andrew J. Tavi. “Over recent months, our company has implemented significant cost savings initiatives and worked diligently with our customers and financial institutions in an attempt to regain solid footing in the face of dire circumstances within the industry. Unfortunately, the frozen credit markets and diminished volumes have limited our ability to effectuate a solution outside of bankruptcy,” added Tavi.
Noble anticipates that Chapter 11 protection and a DIP financing that it has negotiated with certain of its customers (if approved by the Bankruptcy Court) would enable the company to pursue possible sales of its remaining operations.
Noble International, Ltd. is the world's largest laser welder and global provider of 21st Century Auto Body Solutions(R). Noble provides the automotive industry with laser-welded blanks and tubes, as well as advanced roll-formed and hot-formed structural components. Its high-value products offer numerous advantages over traditional methods of automotive body construction.
