Latest News 2008 December Auto Parts Maker - Special Devices Inc. - Files for Bankruptcy

Auto Parts Maker - Special Devices Inc. - Files for Bankruptcy

On December 15, well-known auto parts maker, Special Devices Inc., filed for bankruptcy protection in Wilmington, Delaware.  Special Device Inc. is a maker of a component that causes car air-bags to deploy.  The company reports that it filed for bankruptcy because it was unable to refinance $73.6 in debt.

The Moorpark, California based company said in its' Chapter 11 documents that it had a debt of $103.6 million and that it had assets of $53.1 million as of July 27, 2008.

At this time, the company plans to borrow $22.5 million from Wayzata Investment Partners LLC to help fund its' Chapter 11 reorganization.  Additionally, it is seeking permission to borrow as much as $3 million on an interim basis. 

Special Device Inc. currently owes $13.2 million under a pre-bankruptcy loan.   It was founded in the 1950s as a company that manufactured explosives for film special effects.  It also made initiators for the defense and mining industries.  

This year alone, over 11 U.S. auto-parts manufacturers have sought bankruptcy protection due to the recession and the lack of motor vehicle sales.

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Categories: Bankruptcy Basics