Jan. 30 (Bloomberg) -- Contech LLC, an auto-parts supplier with nine U.S. plants, sought bankruptcy court protection from creditors less than two years after being acquired by investment firm Marathon Asset Management LLC.

The Portage, Michigan-based maker of steering-gear housings listed both assets and debt of more than $100 million on Chapter 11 papers filed today in U.S. Bankruptcy Court in Detroit. Contech’s U.K. subsidiary isn’t in bankruptcy.

The bankruptcy was triggered by falling demand for autos made by its customers and a decision by lenders earlier this month to seize Contech’s cash, court papers show. The company, with 938 workers, said it’s arranging new financing and plans to emerge from bankruptcy this year.

“We have faced the same challenges many of our competitors and colleagues in the automotive industry have faced resulting from significantly reduced production levels at our largest customers,” Chief Executive Officer Morris Rowlett said today in a statement.

At least six partsmakers filed for bankruptcy protection last year as General Motors Corp. and Chrysler LLC sought government loans to stay afloat. The automakers received commitments for a combined $17.4 billion, with GM getting $13.4 billion. The companies must convince Congress by March 31 that they can become viable.

2007 Revenue

Contech’s 2007 revenue of $312 million is projected to have fallen last year about 29 percent to $222.8 million, the company said in court papers. Contech owes a total of $100.1 million on a $90 million first-lien credit agreement and a $25 million second-lien credit agreement entered into in 2007, it said.

After lenders seized the company’s cash earlier this month, checks totaling $5 million were returned, Contech said. The partsmaker maintains its accounts at Bank of America Corp., court papers show.

Contech’s biggest unsecured creditor is Superior Aluminum Alloys LLC, of New Haven, Indiana, with a $2.37 million claim, according to court papers signed by Rowlett.

Marathon, based in New York, agreed in 2007 to buy Contech from SPX Corp. for $146 million. Two Contech affiliates, Contech U.S. and MAG Contech, also filed Chapter 11 petitions today in Detroit. A call to the company wasn’t answered.

Contech lists on its Web site the location of six plants, including two each in Michigan and Indiana, along with one plant in Tennessee and one facility in Wales in the U.K. The company said in court papers it has nine U.S. plants.

The case is In re Contech U.S. LLC, 2:09-bk-42392, U.S. Bankruptcy Court, Eastern District of Michigan (Detroit).

To contact the reporter on this story: Erik Larson in New York at elarson4@bloomberg.net.

Last Updated: January 30, 2009 18:18 EST