ANDERSON, Ind. (AP) - Remy International Inc. and General Motors Corp. have agreed to extend their supply contract, a move that will help Remy's restructuring effort, according to the auto parts maker.
Remy in June announced plans to file for a prepackaged Chapter 11 bankruptcy reorganization to reduce its debt of more than $700 million by $360 million. Company spokeswoman Maya Pogoda said the GM agreement will help the reorganization by strengthening the company's operating margins.
She declined to elaborate on the agreement, which was announced Tuesday.
Remy International produces starters and alternators for the auto industry. As Delco Remy America, it spun off from GM in 1994 and employed nearly 1,500 people locally until the company moved production out of the country in 2003.