Voluntary appeal for reorganization in a Delaware Federal Bankruptcy Court is filed by Cadence Innovation

August 27, 2008 · By ProfitEdition News Filed Under Finance

Decreased automotive production in North American market and increasing material costs effected financial condition of Cadence Innovation. As a result Cadence Innovation filed appeal for reorganization in a Delaware Federal Bankruptcy Court under Chapter 11 of the U.S. Bankruptcy Code on its own.

US automotive industry is facing hard time due to uncertain economy and the increased cost of fuel as a result of which entire auto industry’s revenue are falling rapidly. In the same time Cadence Innovation’s revenue declined as a result of decreased automotive production volume and changing costumer’s preferences. This situation got worsens due to the fast increase in material costs. The end effect of the situation is the filing of petition for reorganization in a Delaware Federal Bankruptcy Court under Chapter 11 of the U.S. Bankruptcy Code by Cadence Innovation.

Six dynamic manufacturing plants that are situated in Michigan and Indiana along with various support facilities are part of the US-based operations. This restructuring is exclusive of all European operations of the company.

President and Chief Executive Officer of Cadence Innovation Jerry Mosingo gave his statement regarding this reorganization. He said that the external factors are the cause of this situation and management of the company worked remarkably in most of the internal issues. Company discovers the need to file for bankruptcy protection.

Share and Enjoy: