Chassix Inc., a supplier of steering knuckles, control arms and brake components to large automakers, is working to finalize a restructuring plan with creditors and seek bankruptcy protection as soon as next week, the Wall Street Journal reported today. The Southfield, Mich., company, owned by private-equity firm Platinum Equity LLC, is negotiating a prearranged bankruptcy plan that would hand ownership stakes to creditors in exchange for forgiving debt and rework contracts with big automakers including General Motors Co. and Ford Motor Co. The company aims to have the plan in place before a bankruptcy filing with a goal of streamlining its trip through court. Chassix, which employs more than 4,000 people worldwide, is in discussions with banks and bondholders for more than $200 million in financing that would help it keep operating during bankruptcy proceedings. The company hopes to finalize a restructuring deal by March 4, when a grace period on a skipped $17 million debt payment expires. Overall, Chassix is looking to restructure about $525 million in bond debt.
