3 Nov 2005
Southfield, Michigan -- Federal-Mogul Corp. has reached an agreement with the United Kingdom Administrators of its affiliates that will allow the Michigan-based automotive parts maker to retain those businesses.
Jose Alapont, Federal-Mogul president and ceo, said the agreement is a "major step" toward the company's emergence from bankruptcy protection in a manner that separates its operating potential from its asbestos liabilities.
As part of the deal, Federal-Mogul retains the businesses and other assets of the affiliates in exchange for monetary amounts and reserves that will be used by the Administrators to distribute to UK creditors. The agreement has been filed in US Bankruptcy Court in Delaware and is subject to various approvals.
Federal-Mogul in October 2001 filed for bankruptcy in the US and administration in the UK.
From Rubber & Plastics News (A Crain publication)
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