GM supplier Unique Fabricating has filed a petition for voluntary Chapter 7 protection in the U.S. Bankruptcy Court. The supplier provided plastics, rubber, and foam, and included GM, Stellantis Bosch, Rivian, and Yanfeng Automotive Interior Systems among its customers. The company has faced financial issues for months, disclosing this past April that it was facing insolvency.
Per a recent report from Crain’s Detroit Business, which cites a bankruptcy document, Unique Fabricating has up to $50 million in estimated liabilities and between $10 million and $50 million in assets. The New York Stock Exchange is now moving to delist the company in light of its bankruptcy. Unique Fabricating made its initial public offering at $11 per share in 2015, but stock value has plummeted in the years since, trading at less than $1 per share for the last year.
Back in May, Unique Fabricating arranged an agreement with GM, Stellantis, and Yanfeng Automotive Interior Systems to raise prices and investments until Unique Fabricating could restructure. GM, Stellantis, and Yanfeng agreed to bail out the company with price increases and investment of up to $15 million to provide some financial relief.
At the time, the company also entered a forbearance agreement with lender Citizens Bank N.A. stipulating that Unique Fabricating must pay $1.23 million in past-due interest, attorney, and adviser fees. Concurrently, Unique Fabricating also faced an investigation from the U.S.-Mexico-Canada Agreement’s Interagency Labor Committee for Monitoring and Enforcement after the company was accused of allegedly obstructed workers’ freedom of association and right to collective bargaining in Mexico.
Unique Fabrication posted a $6.2 million operating loss and $10.2 million net loss for Q3 of the 2022 calendar year, with full-year sales projected at $136 million. The company also had $500,000 in cash and $1.3 million in liquidity under its revolving credit facility. It’s unclear if the UAW labor strike played a role in the company’s failure to achieve financial stability.