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GST says “business as usual” after filing for bankruptcy protection

Automotive leather manufacturer GST AutoLeather has filed for bankruptcy protection in the US, meaning it will not have to pay its debts while it restructures its business and looks for a buyer.

Lenders have agreed to wait to have $40 million repaid to allow the company to continue its  operations and GST said this means it will be “business as usual” for its tannery, finishing and cutting plants in Mexico, Europe, Africa and Asia. It will also look for a buyer to take the company on as a going concern and said it is in discussion already with the same group of lenders about the possibility of their buying GST if no other buyer comes forward with a suitable offer.

Chief executive, Dennis Hiller, said: “After working with our advisors to review a range of strategic alternatives, the proposed strategy represents the best solution to ensure continuity of supply to our customers, maximise value for all stakeholders and position the company for long-term success. I would especially like to thank our customers, suppliers, employees and senior lenders for supporting us through this time.”

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