The auto supplier has “sufficient resources to support ongoing operations…”
Northville, Michigan – Shares of Cooper-Standard Holdings Inc. fell sharply after the company announced it was evaluating “potential alternatives to refinance its capital structure.”
Goldman Sachs is to assist as financial advisor in the analysis and valuation process, the supplier of automotive sealing, fuel, brake and fluid transfer systems announced on June 14.
As of March 31, Cooper Standard had total liquidity of $395.6 million (€380.3 million), including availability under its modified asset-based senior revolving credit facility.
Cooper Standard added that it recently received $51 million in cash payments from the US Internal Revenue Service for tax refunds related to net operating losses.
Based on current market expectations, the company “expects its current liquidity position to provide sufficient resources to support ongoing operations and the execution of planned strategic initiatives for the foreseeable future.”
Cooper Standard’s stock price fell 27%, from $5.06 on June 14 to $3.71 the next day; its announcement apparently adds to traders’ worries about the current direction of the auto market.
