Linamar Corporation

Linamar Corporation

April 02, 2009 16:11 ET

Linamar Comments on Receivable Exposure Levels With GM and Chrysler

GUELPH, ONTARIO--(Marketwire - April 2, 2009) - In light of the uncertainties existing in today's automotive marketplace Linamar Corporation (TSX:LNR) is disclosing its current receivable exposure levels to GM and Chrysler.

Linamar understands that under US bankruptcy laws, in the event of a company entering chapter 11 bankruptcy, all goods delivered within 20 days of the date of the chapter 11 filing obtain a special priority and are paid as part of the chapter 11 reorganization, once the reorganization plan is approved. Any goods shipped prior to 20 days before the date of the chapter 11 filing are at risk. A GM or Chrysler bankruptcy would be a unique and unusual event whose consequences can't be foreseen and there can be no assurance of recovery.

The combined total of Linamar's receivables balance greater than 20 days with GM and Chrysler is in aggregate estimated to be less than 30 million or approximately 9% of Linamar's total receivables balance as of March 31st, 2009.

"Our typical experience with customers in the past that have filed for chapter 11 protection is that we have been able to recover up to half or more of at risk receivables", said Linamar CEO Linda Hasenfratz. "We are pleased that our diversification efforts have allowed us to minimize our risk with any one customer in this way, particularly in light of uncertainties in the industry at this time".

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 11,000 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

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.

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