By Terry Kosdrosky, Crain’s Detroit BusinessDearborn, Michigan- Plastech Engineered Products Inc. may file a bid to buy all or some of the assets of bankrupt Collins & Aikman Corp., according to Crain’s Detroit Business, a sister magazine to Urethanes Technology.Dearborn-based Plastech is working with New York investment banker Goldman Sachs & Co. to pursue a Collins & Aikman acquisition, according to a source outside the company familiar with the proposed deal. That source did not want to be named. A second source, more closely involved in the proposed deal, confirmed Plastech planned to make a bid.Plastech is owned by Julie Nguyen Brown and is one of the largest minority-owned auto suppliers, with 2004 sales of about $1000 million.Any deal would have to be approved by US Bankruptcy Judge Steven Rhodes in Detroit. But Plastech’s taking over some of Collins & Aikman’s work would solve problems for the bankrupt supplier and the automakers. It would give Collins & Aikman and its creditors much-needed cash and give automakers a more stable supplier.David Youngman, director of corporate communications for Collins & Aikman, said the company has not accepted any offers to date and is continuing to work on its business plan, which is due to Rhodes by the end of the month.Collins & Aikman has parts on nearly every car made in North America and is launching some critical new programmes, such as Ford Motor Co. ‘s Fusion. That makes Collins & Aikman too big to fail, but its financial problems make it an expensive problem. Carmakers are presently funding the company in bankruptcy with about $300 million in loans, price relief and other measures.A quick asset sale would benefit nearly everyone, the source said.Plastech produces a variety of plastic components. The company is no stranger to big deals. In 2004, Plastech acquired LDM Technologies Inc. for an estimated $290 million, an acquisition that nearly doubled the size of Plastech.Although Plastech has taken on more debt since the acquisition, Brown has said the company is profitable.Troy, Michigan-based Collins & Aikman produces interior trim, instrument panels, fabric and automotive acoustics. The company filed for Chapter 11 bankruptcy protection 17 May.”
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