NOVI, Mich., Feb. 2 (UPI) -- Tower Automotive of Novi, Mich., said Wednesday it and some of its subsidiaries have filed to reorganize under Chapter 11.
Tower said it filed for Chapter 11 protection to address liquidity needs and facilitate a debt restructuring. The company filed its petition with the U.S. Bankruptcy Court for the Southern District of New York.
Tower said that while it benefited from recent short-term initiatives to improve liquidity, the company faced a number of recent setbacks requiring it evaluate long-term solutions. A reorganization filing provides the company with the most efficient way of addressing these issues, while continuing normal business operations.
The company reiterated its operations are solid, performing well and will continue in the ordinary course.
In conjunction with its filing, the company has arranged commitments for up to $725 million in debtor-in-possession financing from JPMorgan, subject to court approval.
Tower's international operations in Europe, Asia, Brazil and Canada are not included in the Chapter 11 reorganization.
Tower Automotive is a global designer and producer of vehicle structural components and assemblies used by every major automotive original equipment manufacturer.
