Linamar Comments on General Motors Bankruptcy Announcement
June 01 2009 - 9:45AM
Marketwired
Given the filing for Chapter 11 bankruptcy protection by General
Motors (GM) today, Linamar (TSX: LNR) is clarifying its position
with respect to its outstanding GM receivables.
As already outlined previously in its press releases dated April
2 and April 30, 2009, Linamar has limited exposure to GM on both
the receivables and sales volume side. With respect to receivables,
the outstanding balance owing from GM that is older than 20 days
for GM American entities is estimated at less than $2.8
million.
For better assurance of full recovery, Linamar has EDC insurance
coverage in place to fully cover the overall balance of outstanding
receivables. Additionally, over the past few months, Linamar has
been working with GM to minimize the outstanding receivables
balance.
"We are of course disappointed that GM 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
strong position to weather the situation given steps we have taken
over the past months to minimize our exposure", 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, GM, 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 9,000 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
Linamar (TSX:LNR)
Historical Stock Chart
From May 2024 to Jun 2024
Linamar (TSX:LNR)
Historical Stock Chart
From Jun 2023 to Jun 2024