Distressed Supplier Workouts and Bankruptcies
Only the strongest representation will do when suppliers are in distress
The highly regulated industry — with its high-volume, low-margin, single-source supplier model and just-in-time inventory method — is just one weak link away from catastrophic financial disruption. Product recalls, natural disasters, labor strikes. These breaks in the supply chain can come from anywhere, at any time, and with no warning.
Experienced counsel is critical when facing catastrophe
When the future of production is uncertain, our experience representing dozens of OEMs and Tier suppliers in these high-risk, highly complex matters is critical. Our experience ranges from distressed supplier workouts to many of the major bankruptcies over the last 20 years—including Collins and Aikman, Plastech, Chrysler, GM, Intermet, Revstone, Metavation, Exide and Chassix—we have successfully navigated this highly unique challenge, time and time again.
Whether it’s restructuring or liquidating the supplier, in or out of bankruptcy, while protecting production, we help clients quickly understand the benefits and risks associated with all options.
Our deep bench includes a former in-house counsel at an international OEM, along with a team skilled in negotiating with multiple parties with competing interests to determine the best course of action to minimize risk and stabilize the supply chain.
Our services include:
- Distressed supplier disputes - litigation is a last resort, and we work with all parties to clearly manage expectations and consequences to effectively achieve our client’s best interests.
- Bankruptcy - if bankruptcy is unavoidable, our established relationships help clients ensure production throughout the process. There is much more involved than bankruptcy documentation, so comprehensive auto industry knowledge is essential.
- Supplier risk management programs - we can advise clients in the development and implementation of supplier risk management programs to monitor the financial stability of their supply base, including proactive supplier audits. Through facility visits and extensive audits, we can identify operational weaknesses and provide a detailed 100-day action plan to address them.
- Exit strategies - we work to develop practical resourcing to ensure uninterrupted production and minimize risks and liabilities.