Linamar Corporation
TSX : LNR

Linamar Corporation

June 01, 2009 09:45 ET

Linamar Comments on General Motors Bankruptcy Announcement

GUELPH, ONTARIO--(Marketwire - June 1, 2009) - Given the filing for Chapter 11 bankruptcy protection by General Motors (GM) today, Linamar (TSX:LNR) is clarifying its position with respect to its outstanding GM receivables.

As already outlined previously in its press releases dated April 2 and April 30, 2009, Linamar has limited exposure to GM on both the receivables and sales volume side. With respect to receivables, the outstanding balance owing from GM that is older than 20 days for GM American entities is estimated at less than $2.8 million.

For better assurance of full recovery, Linamar has EDC insurance coverage in place to fully cover the overall balance of outstanding receivables. Additionally, over the past few months, Linamar has been working with GM to minimize the outstanding receivables balance.

"We are of course disappointed that GM was unable to successfully negotiate with stakeholders a satisfactory solution to allow them to avoid Chapter 11, however, we feel that we are in a strong position to weather the situation given steps we have taken over the past months to minimize our exposure", said Linamar CEO Linda Hasenfratz.

Linamar is confident that given the steps previously taken, it will recover the majority of its receivables either within or outside of the Chapter 11 process.

Linamar looks forward to continuing to work with its valued customer, GM, as it moves through this restructuring process.

Linamar Corporation (TSX:LNR) is a diversified global manufacturing company of highly engineered products. The company's Powertrain and Driveline focused divisions are world leaders in the collaborative design, development and manufacture of precision metallic components, modules and systems for global vehicle and power generation markets. The company's Industrial division is a world leader in the design and production of innovative mobile industrial equipment, notably its class-leading aerial work platforms and telehandlers. With more than 9,000 employees in 37 manufacturing locations, 5 R&D centers and 11 sales offices in Canada, the US, Mexico, Germany, Hungary, the UK, China, Korea and Japan Linamar generated sales of over $2.2 Billion in 2008. For more information about Linamar Corporation and its industry leading products and services, visit www.linamar.com.

Certain information regarding Linamar set forth in this document, including management's assessment of the Company's future plans and operations may constitute forward-looking statements. This information is based on current expectations that are subject to significant risks and uncertainties that are difficult to predict. Actual results may differ materially from these anticipated in the forward-looking statements due to factors such as customer demand and timing of buying decisions, product mix, competitive products and pricing pressure. In addition, uncertainties and difficulties in domestic and foreign financial markets and economies could adversely affect demand from customers. These factors, as well as general economic and political conditions, may in turn have a material adverse effect on the Company's financial results. The Company assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward-looking statements.

Contact Information