Loss-making US automotive supplier Unique Fabricating has announced it has entered an ‘Accommodation Agreement’ with three of its main customers.
These are understood to be rivals Stellantis and GM, as well as Chinese company Yanfeng Automotive Interior Systems.
The agreement will help Unique Fabricating stay afloat as it undergoes a “sale or restructuring process”, it said in a statement.
The companies will provide funds of up to $15 million, and the agreement will continue through to 31 October 2023.
Unique Fabricating’s Q3 2022 filings showed a net loss of $10.6 million, with total outstanding debt as of September 2022 of $47.7 million.
Reports of insolvency emerged earlier this year. Its Mexico plant was recently named in a Department of Labour complaint over alleged labour rights abuses.
It has also entered a forbearance agreement, meaning it must pay off over $1.2 million of interest that is overdue to its lender, which is understood to be Citizens Bank.
Unique Fabricating supports automotive OEMs and their tier one suppliers, manufacturing non-metallic die-cut parts for acoustic, air/water sealing, and BSR applications.
Local media reports say that GM has told reporters it is working with other United Fabrication customers to ensure that the firm stays afloat and ensure continuity of supply.
