The aftermarket giant was forced to file for protection under US Chapter 11 and UK bankruptcy procedures. This allowed it to resolve its multi-million dollar asbestos liabilities incurred after the acquisition of British firm Turner and Newall and its American subsidiaries in 1998.
Now Chip McClure, chief executive officer and president of Federal-Mogul, says the company has reached a deal with its claimants, lenders and creditors that will allow it to come out of Chapter 11 in 2004.
Robin Shaw, managing director of Federal-Mogul Aftermarket UK, says this is good news for retailers. “We expect the company to be stronger than it ever was,” he says.