Wrena Files for Chapter 11 Bankruptcy to Pursue Sale

Wrena, a full-service automotive supplier of stamped structural, tubular components, assemblies and fine blank components, has voluntarily filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Eastern District of Michigan to pursue a sale of the company’s assets. The decision aims to facilitate a sale process that will maximize value for stakeholders and ensure the continued supply of high-quality products to Wrena’s customers._x000D_
_x000D_
The company has faced significant challenges due to rising costs, an isolated warranty claim that resulted in a significant judgment and other market pressures, which prompted the decision to restructure through a court-supervised sale process._x000D_
_x000D_
“After consideration of available options, we have determined that the sale of our business through a Chapter 11 process is the best path forward,” Scott Eisenberg, chief restructuring officer of Wrena, said. “This process will allow us to continue operations, preserve jobs and position the company for future success under new ownership.”_x000D_
_x000D_
To support ongoing operations during the sale process, Wrena has secured the use of cash collateral and debtor-in-possession (DIP) financing, subject to court approval. The company anticipates that the cash collateral usage and DIP financing will allow it to continue operating without interruption, including paying employees, meeting customer demands and fulfilling its post-bankruptcy obligations to suppliers._x000D_
_x000D_
The company’s legal advisors are Wolfson Bolton Kochis (Scott A. Wolfson and Anthony J. Kochis), financial advisors DWH (Heather Gardner and Ryan Seely) and investment banker Cascade Partners (Matthew Miller, Shareef Simaika and Bob Carey).