General Motors and Stellantis might be rivals, but they’re joining forces to help a struggling supplier stay afloat until a restructuring or sale takes place.
As noticed by Crain’s Detroit, Michigan-based Unique Fabricating entered into an Accommodation Agreement with three of its main customers. These are said to be General Motors and Stellantis as well as China’s Yanfeng Automotive Interior Systems.
In a release, Unique Fabricating said the agreement requires them to “immediately commence a process for the sale of its business to a qualified buyer, in accordance with fixed milestones, which contemplates completion of the sale process by no later than October 31, 2023.” It also called for the company to develop a restructuring plan, appoint a chief restructuring consultant, and engage an investment banker.
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In exchange, the companies will provide the supplier with up to $15 (£12 / €14) million. Of course, they’re not doing this out of the goodness of their heart as the money will help to support on-going operations and prevent supply chain issues.
In a statement, GM’s David Barnas told the publication “We are working with several of Unique Fabricating’s other customers and its creditors to allow them to be viable long-term through either a restructuring or sale. We do not expect any interruption to GM supply during this process.”
Unique Fabricating also entered into a Forbearance Agreement, which calls on the company to make good on “interest that is overdue” as well as attorney and advisor fees. This totals $1,228,125 (£987,160 / €1,148,788) and the publication reports that money is owed to Citizens Bank.
While Unique Fabricating isn’t a household name, they specialize in multi-material foam, rubber, and plastic components used in noise, vibration and harshness (NVH) management as well as water and air sealing. The company also makes engine covers, fender stuffers, gas tank pads, and glove box liners – among other things. Unique Fabricating has been struggling for awhile and was $47.7 (£38.3 / €44.6) million in debt as of September 30, 2022.