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Modern Metal Products Files For Bankruptcy

Northern Illinois auto parts company has filed for Chapter 11 bankruptcy protection, hindered by the drop in auto sales.

LOVES PARK, Ill. (AP) -- A northern Illinois auto parts company has filed for Chapter 11 bankruptcy protection, hindered by the drop in auto sales.

Loves Park-based Modern Metal Products owes more than $6 million to its top 20 creditors. It primarily makes hinges for folding rear seats for Ford, Chrysler, General Motors and Nissan.

Company president David Ewing says revenue was about $60 million in the fiscal year ending in June but sales have dropped 40 percent since then.

Ewing says there's an interested buyer, but the buyer hasn't found a financial institution to finance the deal.

The company has been reducing costs for months and has trimmed jobs from about 220 to 150.

Modern Metal is among the largest employers in the Rockford area. The city has seen the biggest jump in unemployment in the state.

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