TITLE

Can Wilbur Ross rescue suppliers?

AUTHOR(S)
Sherefkin, Robert; Wilson, Amy
PUB. DATE
December 2005
SOURCE
Automotive News;12/19/2005, Vol. 80 Issue 6181, p3
SOURCE TYPE
Trade Publication
DOC. TYPE
Article
ABSTRACT
This article reports on the declaration made by Wilbur Ross, CEO of WL Ross & Co. LLC, that he has got a debt-free balance sheet in his bid to build three giant auto parts companies. Ross, who made a bundle buying bankrupt steel makers, is prepared to buy up dying auto parts makers at rock-bottom prices to create a trio of megasuppliers. Ross boasts a $4.5 billion war chest to finance his global auto parts venture. A decade of debt financing helped send nine of the auto industry's largest suppliers into bankruptcy court since 1999 and left many more with junk credit ratings. But bargain-basement investors such as Ross then can create healthy companies by snapping up assets of failed businesses after the bankruptcy court has wiped away debt and legacy costs.
ACCESSION #
19290146

 

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