Syndication of the credit backing The Cypress Group and Goldman Sachs Capital Partners' $1.165 billion acquisition of Cooper-Standard Automotive has been delayed until after Thanksgiving due to an injunction on the sale.
The United Steelworkers of America filed a complaint Sept. 27 asserting they have the right to require the buyer to negotiate new labor agreements before a sale takes place. A U.S. District Court in Indiana granted a preliminary injunction on the sale of four of the 47 Cooper-Standard facilities. The facilities affected are located in Auburn, Ind., El Dorado, Ark., and two in Bowling Green, Ohio. The seller, Copper Tire & Rubber Co., is appealing the decision to the U.S. Seventh District Circuit Court of Appeals.
Deutsche Bank and Lehman Brothers are leading the credit for the acquisition. It comprises a $125 million revolver, $75 million "A" loan and $90 million "B" loan. A Cooper spokesman referred calls to the Cypress Group. A Cypress Group spokesman declined comment.