UCI International Files for Chapter 11 Bankruptcy
June 2, 2016—UCI International filed for Chapter 11 bankruptcy after losing a major customer to a Chinese competitor, according to a report from Bloomberg.
The manufacturer of pumps and filters for companies such as Ford, General Motors, NAPA, STP and Motorcraft until last year also sold many aftermarket parts through AutoZone and Advance Auto Parts.
Recently, many of UCI’s customers switched suppliers, with Advance Auto Parts turning to a Chinese supplier. UCI was left with an “unsustainable” balance sheet, according to Brian Whittman, turnaround advisor Alvarez & Marsal, who was brought in to act as UCI’s restructuring officer.
"In late May, it became clear to the debtors that their key constituencies would be unable to reach agreement on the terms of a consensual, out-of-court restructuring," Whittman said, according to the report.
UCI’s assets total roughly $435 million while liabilities reach more than $700 million, according to filings in the Delaware bankruptcy court.