Skip to main content
Sister Publication Links
  • Automotive News
  • Automobilwoche
  • Automotive News Canada
  • Automotive News Mexico
Subscribe
  • Subscribe
  • Newsletters
  • Login
  • HOME
  • News
    • Photos
    • Automakers
    • Suppliers
    • Sales By Market
    • Environment/Emissions
    • Latest Launches
    • Sales and Retail
    • Car Cutaways
    • On The Move
    • China's Baoneng boosts stake in Qoros
      Citroen says Ami One two-seater is a new concept for affordable mobility
      EU, Japan back automatic braking regulation
      German auto jobs at risk from hard Brexit
    • Magna's record Q4 revenue boosted by European contract assembly
      Lidar sector moves at light speed
      Europe's first lithium mine looks to automakers for investment
      Driv spinoff to build smart suspension systems
    • Porsche, Alfa Romeo and Nissan take big hits as European sales fall 5% in January
      Russia sales rise nearly 1% in January despite VAT increase
      Audi, Fiat, BMW among losers as Spanish sales fall 8% in January
      Volvo, VW gain sales in UK market down nearly 2% in January as diesel plunge continues
    • Volvo blurs the wagon/SUV line with the V60 Cross Country
      view gallery
      7 photos
      New Range Rover Evoque designed for the 'urban jungle'
      Range Rover Evoque gets hybrid tech to cut emissions
      Tarraco gives Seat a flagship SUV to help retain wealthy buyers
    • Ferrari will unveil V-8 hybrid supercar this year
      Mercedes outsold Audi in China last month on sedan demand
      Tesla's Musk visits Norway to review delivery delays
      Europe's minicar segment to shrink as VW, PSA mull axing their smallest cars
    • Suppliers to the new Porsche Panamera
      Suppliers to the new Peugeot 5008
      Suppliers to the new Seat Ibiza
      Suppliers to the new VW Touareg
    • Ford names new chief government relations officer
      Daimler appoints Airbus exec as finance chief
      VW China CEO to join VW brand's management board
      Mini USA names marketing veteran McKenna head of product planning
    • Geneva Photo Gallery
    • Beijing Photo Gallery
    • Frankfurt Photo Gallery
    • Paris Photo Gallery
    • Shanghai Photo Gallery
  • Auto Shows
    • Geneva Auto Show
    • Frankfurt Auto Show
    • Paris Auto Show
    • Beijing Auto Show
    • Shanghai Auto Show
    • Smart to showcase latest mobility services in Geneva show car
      Seat's Cupra Formentor concept focuses on sporty performance
      Peugeot's 508-based Geneva concept previews new range of high-performance electrified vehicles.
      Aston Martin teases new hypercar ahead of Geneva debut
    • Bugatti considers four-door model for 2024
      Frankfurt photo booth
      Frankfurt's best and wurst
      Merkel says German car industry must work to rebuild trust
    • Vietnam's first automaker now has names for first sedan, SUV
      Bugatti mulls SUV as part of broader model range
      Ferrari Monza supercars will earn $755 million in revenue
      China's GAC likely to debut in Europe with an EV
    • VW will launch SOL EV brand in China with subcompact crossover
      view gallery
      9 photos
      BMW's iX3 concept heralds electric expansion
      view gallery
      9 photos
      BMW will export iX3 electric SUV to Europe, U.S. from China
      view gallery
      11 photos
      Mercedes seeks to keep China luxury lead with stretched A class
    • view gallery
      7 photos
      Jeep finds green groove with plug-in hybrid SUV concept
      Ferrari, Aston Martin, Maserati sales soar in China as rich snub austerity push
      China's luxury market to grow to 3M a year, Audi, Mercedes predict
      view gallery
      10 photos
      Mercedes hints at new styling with sedan concept
  • Opinion
    • Blogs
    • Luca Ciferri
    • Douglas A. Bolduc
    • Paul McVeigh
    • Is Honda's UK plant closure the beginning of a Japanese Brexit?
      Ford's 'redesign' for Europe emphasizes SUVs, LCVs
      Russia's Google, Yandex, impresses with its self-driving tech
      Renault Twizy gets new life in Korea as motorcycle replacement
    • Is Honda's UK plant closure the beginning of a Japanese Brexit?
      Ford's 'redesign' for Europe emphasizes SUVs, LCVs
      Russia's Google, Yandex, impresses with its self-driving tech
      Renault Twizy gets new life in Korea as motorcycle replacement
    • Lidar sector moves at light speed
      Is Honda's UK plant closure the beginning of a Japanese Brexit?
      Ford's 'redesign' for Europe emphasizes SUVs, LCVs
      Russia's Google, Yandex, impresses with its self-driving tech
    • Is Honda's UK plant closure the beginning of a Japanese Brexit?
      Ford's 'redesign' for Europe emphasizes SUVs, LCVs
      Russia's Google, Yandex, impresses with its self-driving tech
      Renault Twizy gets new life in Korea as motorcycle replacement
  • Maps
    • E-Car & Component Map of Europe
    • Powertrain Map of Europe
    • Assembly Plant Map of Europe
  • Supplements
    • Connected Car
    • Talk From The Top
    • BMW 100
    • Car Cutaways
  • EVENTS & AWARDS
    • Automotive News Europe Congress
    • Rising Stars
    • Eurostars
    • Leading Women
  • E-MAGAZINE
    • Read the latest issue
    • Download the app
    • Subscribe
  • More
    • E-Magazine
    • Contact Us
    • 2019 Media Kit
    • About Us
MENU
Breadcrumb
  1. Home
  2. Automotive News Europe
July 19, 1999 01:00 AM

BREED FACES SELL-OFF OPTION AS DEBT PROBLEMS MOUNT

Lindsay Chappell
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print

    Creditors are giving Breed Technologies Inc. a three-and-a-half-month reprieve on its debts as the safety systems manufacturer seeks solutions to its financial problems.

    One possible remedy could be selling part of the business.

    At the beginning of the month, the Florida, USA-based supplier was given until 12 October to make payments on $675 million debts that were due 30 June. Breed has racked up total debts of about $900 million during an aggressive acquisition strategy in recent years.

    Among the conditions of the reprieve stipulated by creditors are that Breed must pay a higher interest rate on the debt after August, and it must also 'explore strategic alternatives for the business.' Analysts say the latter condition translates to selling part of the company.

    Breed has retained an investment banking firm, Wasserstein Perella & Co. of New York, to advise it on a 'capital transaction program.' But a Breed spokeswoman would not confirm that a sale is definite. 'We are exploring many ideas and haven't fully clarified our options,' said spokeswoman Gina McLean.

    Analysts have reported that Breed has talked to Siemens AG about a possible acquisition. In 1997, Siemens formed a joint venture with Breed to design 'smart' airbags. As part of the deal, the German supplier bought a 10 percent share of Breed. The two companies broke off acquisition talks last month, according to Standard & Poor's Corp.

    Breed has many worldwide operations it could sell. 'But if they had their choice, I'm sure they wouldn't want to sell anything,' said David Strickler, an analyst with Bowles Hollowell Conner & Co., a Charlotte, North Carolina, investment firm that follows Breed.

    Just two years ago, Breed paid $711 million to buy the seat-belt business of AlliedSignal Inc. Strickler said reselling that operation could easily wipe away Breed's problems. But such a sell-off might undermine Breed's strategy of supplying total safety-restraint systems, the analyst acknowledged.

    Breed has tried to piece together a global systems approach to its airbag business. It has acquired steering-wheel producers, seat-belt makers, sensor manufacturers and other suppliers in North America and Europe to turn itself into an integrated supplier.

    But as operating losses mounted, Breed began taking steps to get rid of excess overhead. In the past two years it has closed half its worldwide plants. It has also tried to get out of the plastic trim business.

    Spokeswoman McLean said Breed has been in 'continuous communications' with customers as it works through its debt problems.

    Monthly E-Magazine
    Thumbnail
    View latest issue
    See our archive
    Sign up for free newsletters
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please select at least one newsletter to subscribe.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    Get Free Newsletters

    Sign up and get the best of Automotive News Europe delivered straight to your email inbox, free of charge. Choose your news – we will deliver.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    Automotive News Europe Monthly E-Magazine

    Sign up to receive your free link to each monthly issue of Automotive News Europe as soon as it's published.

    GET THE E-MAGAZINE
    Connect with Us
    • Twitter
    • Facebook
    • LinkedIn
    • Instagram

    Founded in 1996, Automotive News Europe is the preferred information source for decision-makers and opinion leaders operating in Europe.

    Contact Us

    1155 Gratiot Avenue
    Detroit MI  48207-2997
    Tel: +1 877-812-1584


    Email Us

    Resources
    • About us
    • Contact Us
    • 2019 Media Kit
    • Advertise with Us
    • Ad Choices Ad Choices
    • Sitemap
    Awards
    • Rising Stars
    • Eurostars
    • Leading Women
    Legal
    • Terms and Conditions
    • Privacy Policy
    Copyright © 1996-2019. Crain Communications, Inc. All Rights Reserved.
    • HOME
    • News
      • Photos
        • Geneva Photo Gallery
        • Beijing Photo Gallery
        • Frankfurt Photo Gallery
        • Paris Photo Gallery
        • Shanghai Photo Gallery
      • Automakers
      • Suppliers
      • Sales By Market
      • Environment/Emissions
      • Latest Launches
      • Sales and Retail
      • Car Cutaways
      • On The Move
    • Auto Shows
      • Geneva Auto Show
      • Frankfurt Auto Show
      • Paris Auto Show
      • Beijing Auto Show
      • Shanghai Auto Show
    • Opinion
      • Blogs
      • Luca Ciferri
      • Douglas A. Bolduc
      • Paul McVeigh
    • Maps
      • E-Car & Component Map of Europe
      • Powertrain Map of Europe
      • Assembly Plant Map of Europe
    • Supplements
      • Connected Car
      • Talk From The Top
      • BMW 100
      • Car Cutaways
    • EVENTS & AWARDS
      • Automotive News Europe Congress
      • Rising Stars
      • Eurostars
      • Leading Women
    • E-MAGAZINE
      • Read the latest issue
      • Download the app
      • Subscribe
    • More
      • E-Magazine
      • Contact Us
      • 2019 Media Kit
      • About Us