Linamar Comments on Chrysler Bankruptcy Announcement
April 30 2009 - 2:19PM
Marketwired
Given the filing for Chapter 11 bankruptcy protection by Chrysler
today, Linamar (TSX: LNR) is clarifying its position with respect
to its outstanding Chrysler receivables.
As already outlined previously in its press release dated April
2, 2009, Linamar has limited exposure to Chrysler and GM on both
the receivables and sales volume side. With respect to receivables,
the outstanding balance owing from Chrysler that is older than 20
days for Chrysler Canadian and American entities is estimated at
less than $700,000.
For better assurance of full recovery, Linamar has EDC insurance
coverage in place for all of the outstanding receivables.
Additionally, over the past few months, Linamar has been working
with Chrysler to minimize the outstanding receivables balance.
"We are of course disappointed that Chrysler was unable to
successfully negotiate with stakeholders a satisfactory solution to
allow them to avoid Chapter 11, however, we feel that we are in a
very strong position to weather the situation given steps we have
taken with Chrysler over the past months to minimize our exposure
to them", said Linamar CEO Linda Hasenfratz.
Linamar is confident that given the steps previously taken, it
will recover the majority of its receivables either within or
outside of the Chapter 11 process.
Linamar looks forward to continuing to work with its valued
customer, Chrysler, as it moves through this restructuring
process.
Linamar Corporation (TSX: LNR) is a diversified global
manufacturing company of highly engineered products. The company's
Powertrain and Driveline focused divisions are world leaders in the
collaborative design, development and manufacture of precision
metallic components, modules and systems for global vehicle and
power generation markets. The company's Industrial division is a
world leader in the design and production of innovative mobile
industrial equipment, notably its class-leading aerial work
platforms and telehandlers. With more than 10,000 employees in 37
manufacturing locations, 5 R&D centers and 11 sales offices in
Canada, the US, Mexico, Germany, Hungary, the UK, China, Korea and
Japan Linamar generated sales of over $2.2 Billion in 2008. For
more information about Linamar Corporation and its industry leading
products and services, visit www.linamar.com
Certain information regarding Linamar set forth in this
document, including management's assessment of the Company's future
plans and operations may constitute forward-looking statements.
This information is based on current expectations that are subject
to significant risks and uncertainties that are difficult to
predict. Actual results may differ materially from these
anticipated in the forward-looking statements due to factors such
as customer demand and timing of buying decisions, product mix,
competitive products and pricing pressure. In addition,
uncertainties and difficulties in domestic and foreign financial
markets and economies could adversely affect demand from customers.
These factors, as well as general economic and political
conditions, may in turn have a material adverse effect on the
Company's financial results. The Company assumes no obligation to
update the forward-looking statements, or to update the reasons why
actual results could differ from those reflected in the
forward-looking statements.
Contacts: Linamar Corporation Andrea Bowman (519) 836-7550 (519)
836-9175 (FAX) andrea.bowman@linamar.com www.linamar.com
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