Automobile And Auto Parts Manufacturers
The automobile industry accounts for roughly 4% of the economic output in the United States (as of 2020). The industry came to a near halt for two months following the coronavirus pandemic. As production returns, the industry must deal with delays associated with periodic resurgences of the virus, which impacts the industry at many levels, including disruptions in supply chains.
How We Can Help
The Togut Firm has played a central role in the largest and most complex Chapter 11 cases in the history of the auto industry. We have served as company counsel or co-counsel in virtually all the bankruptcies of major auto manufacturers and component suppliers, including household names such as General Motors, Chrysler, Delphi, Dura, Collins & Aikman, Guilford Mills, and Tower Automotive. Given our substantial experience in this area, we understand the unique issues surrounding the auto business.
Our breadth and depth of experience allow us to render sound advice across the full range of problems that an automotive-sector debtor is likely to face: corporate finance, disputes with key suppliers, contingent liabilities under pension and insurance plans, warranty obligations, dealer claims, unliquidated product liability claims, commitments under union contracts, continuing litigations, and demands of all kinds by secured and unsecured creditors.
Our familiarity with the demands of complex reorganizations and our commitment to containing legal costs make our firm especially well-suited for representing struggling companies through difficult times. Keeping our billing rates 25% below market, our firm represents companies that are considering whether to pursue a restructuring, including in or out of Chapter 11. Because we have no retainer clients or institutional relationships, our law firm can act independently in the interests of the debtor and the estate without the conflicts or complications presented by preexisting affiliations with lenders or parties in interest.
The Togut Firm has achieved outstanding results in several automobile and auto parts manufacturers restructurings by providing independent, creative and efficient client service. Our relevant experience in this area includes:
Chrysler Group LLC
Co-counsel with Jones Day to the debtors, the first of the “big three” domestic automakers to file for bankruptcy, with liabilities exceeding $55 billion. The case became known as the “42-Day Miracle” because it took only 42 days to complete, from the commencement of the case to the closing of the sale to Fiat.
Conflicts counsel with Weil, Gotshal & Manges to the debtors, the largest domestic automaker and the largest industrial enterprise ever to file for bankruptcy, with an estimated $91 billion in assets. The debtors closed the sale of substantially all their assets just 39 days after the petition date.
Conflicts counsel with Skadden Arps to the debtors, the largest automotive parts supplier in the United States, with 44 plants in 13 states and over 50,000 employees in the United States.
Co-counsel with Kirkland to the debtors, another automotive parts supplier. The Togut Firm obtained bankruptcy court approval of agreements with critical vendors and led the debtors’ investigation of potential estate preference and fraudulent conveyance claims.
Guilford Mills, Inc
Counsel to the debtors, a leading worldwide producer and seller of textiles, which successfully restructured over $300 million in secured debt and paid all its unsecured creditors in full under its confirmed Chapter 11 plan. The debtors reorganized chiefly as a fabric supplier to the auto industry.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.