J.P Morgan is looking to syndicate a $675 million debtor-in-possession facility for Federal-Mogul after the company filed for Chapter 11 restructuring and administration under the United Kingdom Insolvency Act. Leigh Pierce, spokeswoman for J.P. Morgan, said a bank meeting is planned in the next couple of weeks, though pricing and an exact date have not yet been determined. Jim Fisher, spokesman for the auto-parts company, said the DIP facility is a global facility, though he could not name any other banks leading the deal. No specific timeframe has been set for the company to emerge from Chapter 11, "it will be years rather than months," noted Fisher. The aim of filing is to structure payments for claimants resulting from asbestos litigation.
J.P. Morgan Preps Federal-Mogul DIP