The U.S. economy has remained resilient in recent months, but auto-parts companies have not. The increasing number of bankruptcies in the auto parts industry is unsettling the high-yield credit markets.
This upheaval is making it increasingly difficult for low-income consumers to purchase cars, and is also compelling banks and financial institutions to write off loans to these failed companies.
On June 11, auto parts supplier Marelli Holdings Co. Ltd. filed for Chapter 11 cases in the United States Bankruptcy Court for the District of Delaware to restructure its long-term debt obligations.
On Aug. 18, Car Toys, which describes itself as “the largest independent multi-channel specialty car audio and mobile electronics retailer in America, with multiple locations across the western U.S.,” filed for bankruptcy….