Virtually no one in Tennessee or beyond is fully protected against a possible financial crisis. It can hit anyone, at any place, at any time. Erin Industries, Inc., a company that supplies parts for Chevy Corvettes, is facing financial challenges.
The Chevy supply company, based in another state, provides transmission parts and tube assemblies for Corvettes. The business recently announced its intent to seek Chapter 11 bankruptcy protection. An increase in the price of materials along with disruptions in the supply chain over the past two years are the primary reasons the company has sought debt relief.
Supplier to Chevy Corvette is a family-owned business
The family-owned supply company has been operating since 1975. It provides parts, not only for Chevy Corvette but for various aerospace industries and other automotive companies as well. In recent years, Erin Industries has had trouble fulfilling its parts contracts, another issue that contributed to the current financial crisis.
Chapter 11 enables companies to stay in business
Chapter 11 bankruptcy involves a restructuring of debt payments. Through this program, a payment plan can be created that, once approved by the court, will ease the financial burden and help pave the way to a return to financial stability. The debts still get paid and the company can keep its doors open for business. In this case, this will no doubt come as good news to the 41 workers on the supply company’s payroll.