CVC propose 350 million US Dollar investment in Federal-Mogul

Federal-Mogul Corporation has advised the U.S. Bankruptcy Court for the District of Delaware that it has approached Citigroup Venture Capital Equity Partners, which has expressed an interest in making an equity investment of 350 million US dollars in the company. CVC has requested that Federal-Mogul agree to an exclusive 90-day negotiating period with CVC and to reimburse CVC for necessary fees and expenses incurred by it in connection with the due diligence review of the company’s business and negotiation of the possible investment.

Chip McClure, Federal-Mogul chief executive officer and president says, “An investment of the type CVC is proposing, if consummated, would create value for the long term by strengthening the balance sheet and enhancing liquidity, while helping ensure that we will continue to deliver innovative products and services to our customers.”

An infusion of new capital will reduce Federal-Mogul’s long-term debt and significantly enhance its liquidity, thus strengthening the company’s ability to compete and succeed in the increasingly competitive global auto parts market.