Failed Motorcar Parts Units to LiquidateTuesday, June 11, 2013
Two companies split from Motorcar Parts of America Inc. have filed for bankruptcy, with plans to liquidate.
Introcan Inc. a Torrance affiliate of Toronto-based Fenwick Automotive Products Ltd., filed for Chapter 7 bankruptcy late Monday in U.S. Bankruptcy Court in Wilmington, Del. Introcan listed assets of less than $10 million and debt of between $100 million to $500 million. In a separate filing, Fenwick listed debt of as much as $500 million, and assets of more than $10 million, according to Bloomberg News.
At least three Fenwick manufacturing and distribution facilities in Pennsylvania have closed in recent days, laying off an estimated 200 workers, according to local media there.
Motorcar Parts, a Torrance rebuilder of alternators and starters, said Monday that it had split off the companies and already planned to write off its investment in Fenwick, which it acquired for $5 million in stock in May 2011. Both Fenwick and Introcan are capitalized separately from Motorcar Parts.
Motorcar Parts was unable to successfully integrate the operations of Fenwick, which makes brake parts, axles and other “under-the-car” parts. Motorcar bought Fenwick for $5 million in 2011. Fenco contributed a $6.9 million operating loss to Motorcar Part’s fiscal third quarter this year.
Motorcar Parts shares on Tuesday closed up 77 cents, or 11 percent, to $7.46 on the Nasdaq.