Valeo Announces That Its North American Subsidiary, VESI, is Cleared to Emerge From Chapter 11.Business Editors PARIS--(BUSINESS WIRE)--Sept. 25, 2002 Valeo (Paris: FR; OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). : VLEEY) today announced that its North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. subsidiary Valeo Electrical Systems, Inc. (VESI VESI Value Engineering Society International ) was cleared to emerge from the protection of Chapter 11 of the US Bankruptcy Code Bankruptcy Code may refer to:
VESI's Plan of Reorganization is expected to become effective on October 7, 2002, and payments to creditors holding allowed claims will commence shortly thereafter. Under the terms of the Plan, unsecured creditors will receive 95 percent of their allowed claims against the Company. VESI now has a new and solid framework for a long-term competitive future. Valeo has agreed to fund the terms of the Plan by contributing $226 million ($190 million on the Effective Date and the balance in 2003) to recapitalize VESI. VESI filed for Chapter 11 on December 14, 2001, to protect its operations in the face of an extremely difficult competitive situation. Since then the VESI management team has worked with customers, suppliers and employees to implement plans to return the Rochester operation to profitability. On May 5, 2002, union members voted to approve revisions to the Collective Bargaining Agreement The contractual agreement between an employer and a Labor Union that governs wages, hours, and working conditions for employees and which can be enforced against both the employer and the union for failure to comply with its terms. , a significant milestone on the path for adoption of the Reorganization Plan A scheme authorized by federal law and promulgated by the president whereby he or she alters the structure of federal agencies to promote government efficiency and economy through a transfer, consolidation, coordination, authorization, or abolition of functions. and for today's clearance to emerge from the protection of Chapter 11. VESI manufactures automotive wiper systems, motors and other components in North America for sale to car and truck manufacturers, component suppliers and other customers. VESI's manufacturing operations are primarily located in a facility in Rochester. Valeo is an independent industrial Group fully focused on the design, production and sale of components, integrated systems and modules for cars and trucks. Valeo ranks among the world's top automotive suppliers. The Group has 142 plants, 53 R&D centers, 10 distribution centers and employs nearly 72,000 people in 24 countries worldwide (end June 2002). For more information on the Group and its businesses, consult our website: www.valeo.com |
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