Evansville-based truck parts maker Accuride Corp., one of the state's largest companies, warned today in its quarterly financial report that the company might seek bankruptcy protection if lenders refuse to restructure its debt.
As of June 30, Accuride had $47.6 million in cash and $580.8 million in net debt. On July 8, the company received a temporary reprieve until Aug. 15 from lenders on $11.7 million in interest due Aug. 3.
In exchange, Accuride agreed to maintain minimum liquidity of $30 million - an amount the company has fallen below previously. In November, Accuride stock was suspended from trading on the New York Stock Exchange because its market capitalization fell below the minimum average of $25 million.
If the company is unable to extend the reprieve, receive a permanent waiver or restructure its debt before the Aug. 15 deadline, Accuride likely would default on the loan, it said in a prepared statement.
"In that event, we would not have sufficient liquidity available to repay such indebtedness and, unless the company were able to obtain additional capital resources, waivers or other accommodations, the company would be unable to continue to fund its operations or continue its business, thereby potentially requiring us to seek relief under the U.S. Bankruptcy Code," the company said.
Accuride reported a second-quarter loss of $36.1 million, or $1 per share, compared with profit of $3.4 million, or 10 cents per share, in the same period last year.
Revenue fell 45 percent over the year-ago quarter, to $135.2 million.
Accuride's financial troubles date to at least last year. In September, the directors accepted the resignation of its CEO as the company laid off 392 employees.
Accuride had 3,500 employees at the end of 2008, with about 400 in Indiana.
Company shares traded this morning at 58 cents each, up a penny.