FP Trading Desk submits: A stunning 43 automotive parts makers have gone bankrupt since much of the world plunged into a recession last fall, including major names like Lear Corp. and Visteon Corp. But a key meeting with a U.S. supplier trade group has convinced KeyBanc Capital analyst Brett Hoselton that a major supplier disruption now appears unlikely and that the remaining suppliers are beginning to see improved pricing. “The bankruptcy process is currently working on properly enabling Chapter 11 re-organizations rather than Chapter 7 liquidation, and debtor-in-possession financing is available either through banks and lending groups or the automakers themselves,” Mr. Hoselton writes in an August 24 research note.Complete Story »
