Federal-Mogul, the global parts supplier, is poised to rebuild its business as it gears up to present the US courts with its new financial strategy in November.
One year ago, the aftermarket giant was forced to file for protection under US Chapter 11 and UK bankruptcy procedures. This allowed it to resolve its multi-million dollar asbestos liabilities incurred after the acquisition of British firm Turner and Newall and its American subsidiaries in 1998.
Robin Shaw, UK managing director, says the move has not impacted on aftermarket operations, which are based in Bradford and centred on supplying Ferodo, Champion and Payen parts.
The US courts have the power to take the firm out of Chapter 11 in November, but Shaw expects the recovery process to take longer. “It could take six months, it could take six years it's more likely somewhere in the mid-term,” says Shaw.
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