Automotive Workouts

All facets of the automotive industry are facing unprecedented opportunities and challenges, from workouts and protection of the supply chain to “right-sizing” of the domestic auto industry and acquisition opportunities. Dickinson Wright is acutely aware of the numerous issues that need to be addressed within very short time periods imposed by automotive manufacturing techniques including just in-time parts delivery and sole sourcing of products.

Recognized as one of the nation’s preeminent automotive and financial law firms, Dickinson Wright uses a team-based, commercial-oriented approach to the issues faced by our banking clients with loans in the automotive space.

Some of our related services in banking, bankruptcy and the automotive industry includes:

• Negotiation of amendments, waivers and forbearance agreements that address the financial challenges faced in the context of supply chain management and other customer issues by an automotive borrower. 

• Negotiation and documentation of accommodation agreements and access and security agreements with an automotive borrower’s customer base. 

• Negotiation and documentation of debtor-in-possession financing packages, including subordinated participations or other financing mechanisms provided by a distressed supplier’s customer base. 

• Representation in note sales, mergers and acquisitions. 

• Resolving issues related to the winding down of operations and orderly exit for the customer base, including agreements with customers for purchase of inventory, tooling and equipment. 

• Representation in the orderly liquidation of collateral.