Recticel Interiors North America LLC ("RINA") and Recticel Urepp North America Inc. ("RUNA"), two Automotive subsidiaries of Recticel active in the United States, have decided to apply for Chapter 11 to obtain judicial protection from their creditors.
As a result of the present crisis on the automotive market in the United States and the structural loss-making situation of the interior solutions' activities in this region, RINA and RUNA needed to protect their interests as far as possible in relation to their creditors via this judicial procedure.
By law, RINA and RUNA now have three months in which to reposition a number of contracts.
RINA manufactures and markets interior trim for cars in the United States (dashboard skins and door panel trim) using Colo-fast Spray, named after the unique, patented technology (interior solutions). RINA has a production plant in Clarkston (Michigan) and in Tuscaloosa (Alabama). It produces high-quality interior trim for various models of European and American car and truck manufacturers.
RUNA operates in the manufacture of Colo-fast light-stable polyurethane compounds, which are used by RINA, among other customers. RUNA has a single production plant in Auburn Hills (Michigan).
In total, the two subsidiaries employ a workforce of about 250. These protective measures will have no effect whatsoever on the other activities of the Recticel Group or on the relations with creditors of the parent company Recticel NV/SA or of any other company of the Group. Furthermore, this application will have no impact on the results for 2009, if only because the assets of RINA have previously already been written off in full in the Group's consolidated balance sheet.
