Car-parts maker TI Automotive has breached its banking covenants and has begun talks with its lenders on a comprehensive restructuring of its finances.
Car parts manufacturer TI, based in Oxford, has a 90-year pedigree. It employs 16,000 in 27 countries – more than 1,000 in Britain – and claims that its car parts are found in half the world’s cars. TI makes a range of car parts, but specialises in fuel tanks, pipes and brake lines.
According to the Times Online - TI Automotive is owned by two American investment firms, and has been hammered by the international slump in car sales. UK car production is down nearly 60%, with similar falls in America and other large markets.
Despite a refinancing 18 months ago, which meant it would not have to repay any principal on its loans until 2012, the company is understood to have breached covenants on its loans at the end of last year.
It is thought that TI will now undertake a £455m restructuring of its debts. Advisers believe TI may need up to £200m of new cash. During the 2007 calendar year, TI made a loss of £50m on sales of £1.4 billion.
Report compiled by Find a Part - Car Parts Search Specialists since 1978.
