From the Detroit Free Press
American Axle & Manufacturing Inc. said Thursday it reached a new deal with its lenders and its largest customer, General Motors Co., that will allow the supplier to avert a bankruptcy filing.
The new deal ends months of negotiations between the Detroit-based supplier, its banks and GM after American Axle breached the terms of its loan when its debt and interest costs ran too high.
This passed me by at the time, but it’s dated September 18th. A friend who lives in the effected area pointed it out to me.
The deal American Axle negotiated doesn’t cut the company’s debt. But it does give American Axle cash to maintain its operations through the industry’s downturn, to a time when the company might be able to repay its loans.
I imagine this is good news for their suppliers and workers, but also might set a precedent (and perhaps a blueprint) for metal stampers to follow through these hard times.
“”The deal American Axle negotiated doesn’t cut the company’s debt. But it does give American Axle cash to maintain its operations through the industry’s downturn, to a time when the company might be able to repay its loans.””
How this works? The tax payers have to shoulder the debt?
American Axle didn’t make it.
http://www.wxyz.com/dpp/news/region/wayne_county/american-axle–manufacturing-closes-its-detroit-area-plant-for-good-at-midnight
The doors closed for good Saturday at American Axle & Manufacturing’s Detroit area complex that once employed thousands.