August 10, 2009
Cooper-Standard files for Chapter 11
By Brad Dawson
Rubber & Plastics News Staff
NOVI, Mich.—Cooper-Standard Automotive Inc. is
the latest to join a growing list of automotive industry
suppliers seeking Chapter 11 bankruptcy protection
amid the market’s downturn.
The company’s parent, Cooper-Standard Holdings
Inc., and its U.S. subsidiaries filed Aug. 3 in U.S. Bankruptcy Court in Wilmington, Del. Canadian subsidiary
Cooper-Standard Automotive Canada Ltd. is filing under the Companies’ Creditors Arrangement Act in Ontario Superior of Justice in Toronto.
The Novi-based company said it has about $1.1 billion in bank and bond debt, and declared assets of
$1.73 billion and liabilities of $1.78 billion in its bankruptcy filing. The firm has been negotiating with its
lenders on a restructuring plan that would deleverage
its balance sheet and reduce its debt to about $350 million.
Talks with lenders began in mid-June, a Cooper-Standard spokeswoman said.
The proposal also includes exit financing—money
needed when the company emerges from Chapter 11—
of between $100 million and $150 million. There is no
defined timeline for getting through the bankruptcy
process, but the goal is to do it as soon as possible, she
said.
James S. McElya, Cooper-Standard chairman and
CEO, said restructuring the company’s balance sheet to
align with the automotive marketplace is “the right decision at the right time.” The action will allow the firm
to maintain its leadership position, preserve its business relationships and continue providing technology to
its customers, he said. “We expect to emerge from
Chapter 11 a much stronger and more competitive company.”
Business as usual
Cooper-Standard intends to continue its day-to-day
business operations and fulfill normal expenses such as
employee wages and benefits and supplier payments.
See Chapter 11, page 22
The future of latex
Robbins
Hyde: Market turmoil
purchases
will mostly ease up
Biltrite site
over next few years
By Mike McNulty
Rubber & Plastics News Staff
Supply, demand and pricing in the global petro- chemical markets has been volatile during the last 18 months because of the global economic
downturn, and that hasn’t boded well for synthetic
rubber latex users, according to
an industry watcher.
The good news, though, is
“there is increasing evidence that
the global economic contraction is
approaching its end,” said William Hyde, director of C4 olefins
and elastomers for Houston-based
Chemical Marketing Associates
Inc. He spoke at the International
Latex Conference, held July 21-
22, in Independence, Ohio.
The immediate future is a bit
brighter for the major synthetic latex feedstock market
over the next few years, he said. The exception is butadiene, the key feedstock.
Crude oil and natural gas prices peaked in mid-2008
at levels nearly twice their 2007 value and took a nose
dive from that point on, he said in his presentation
about ethylene, propylene, butadiene, styrene and
methanol feedstocks and the possibilities that exist in
the post-downturn world.
Hyde said the petrochemical landscape is changing
because of the recession, “with a significant amount of
capacity already rationalized and more likely. At the
same time, the long-awaited rise of the Middle East as
a dominant producer of ethylene and derivatives has
begun.”
The supply and demand balances “for the major
petrochemicals have shifted dramatically. In most cases, demand destruction for finished goods has rippled
up the value chain,” he said.
Hyde
By Mike McNulty
Rubber & Plastics News Staff
MUSCLE SHOALS, Ala.—Robbins
L.L.C. has purchased Biltrite Group’s
Findlay, Ohio, custom mixing and calendering operation to expand significantly
its capacity while giving it an important
base in Northwest Ohio.
The deal, scheduled to close Aug. 10,
brings a plant with a history of exceptional service and high-quality products
into the Robbins fold, said Steve Saucier, president and CEO of Muscle Shoals-based Robbins.
The acquired business has been manufacturing rubber products since its
founding as Hercules Rubber Co. in
1952.
Biltrite bought the operation, then
called Hercules Tire & Rubber Co., in
2005. The plant currently makes customized rubber compounds used by customers spread throughout North America.
Some things change, some stay
the same after Biltrite’s custom
mixing operation in Toronto un-dergoes new ownership. See story on page 4.
RPN photo by Mike McNulty
On the floor
Andy Anderson mans a booth for Zeon Chemicals Corp. at the
International Latex Conference, held July 21-22. More than 100
industry professionals attended the event, which largely focused on preparing for the future and the economy. More coverage of the conference begins on page 10.
Saucier said the Findlay facility,
which spans about 250,000 square feet,
has a solid work force of between 60 and
70, which should prove to be a valuable
asset to the company as it takes on an
expanded customer base. It will become
a division of Robbins.
See Latex, page 21
Retaining expertise
There are no plans to make personnel
cuts, but a final determination won’t be
made until the transition to Robbins
See Robbins, page 22
Case closed
Federal judge approves $10.5
million settlement of class-action
suit filed against Continental
Carbon.. . . . . . . . . . . . . Page 3
Eye on distributors
A special report takes a closer
look at distributors and the role
they currently play in the rubber
industry. ............ Page6
