Sifco Seeks to Bar U.S. Suits Amid Brazil Reorganization
The Sao Paulo-based supplier of front axles for trucks and buses has assets of more than $100 million and debt of more than $500 million, according to a Chapter 15 petition filed in U.S. Bankruptcy Court in Manhattan. If a judge grants Chapter 15 relief, creditor actions in the U.S. will be halted and a Brazilian court will oversee Sifco’s main bankruptcy case.
Sifco has distribution and supply agreements with Maumee, Ohio-based Dana Holding Corp. (DAN) in Latin America, according to Standard & Poor’s. Fitch Ratings affirmed Sifco’s default rating at B- in September, citing “weak liquidity, high financial leverage, and business risk in the cyclical automotive business.”
The case is In re Sifco SA, 14-bk-11179, U.S. Bankruptcy Court, Southern District of New York (Manhattan).
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