Auto Parts Maker Files for Chapter 11 Protection

The collapse of the U.S. auto industry contributed to manufacturer Special Devices Inc. to file for Chapter 11 bankruptcy protection. The Moorpark-based company will continue to operate its three business units during a restructuring to bring its level of debt in with line with economic realities, company officials said. Special Devices designs and manufactures parts used in airbag inflators, electronic detonation systems used in the mining industry and parts used in the defense and aerospace industry. The company has facilities in Arizona, Thailand and Japan. While the company has made progress in transitioning to a global company, the decline in automated-related revenue, the credit crisis and tough global economy makes it tough for Special Devices to support its debt structure, said President and CEO Christopher Hunter. “This restructuring effort is focused on our capital structure, not our operations,” Hunter said. Special Devices received $20 million in financing from Wayzata Investment Partners LLC, its largest creditor, to supplement cash availability and allow the restructuring to move forward.