(Bloomberg) -- Italy’s CLN-Coils Lamiere Nastri SpA is working with PricewaterhouseCoopers on a business plan after the supplier to Stellantis NV was hit by weakening demand for the auto sector.
The projections will serve as a start for conversations with creditors over the company’s debt, according to people familiar with the matter. Lenders will also receive an independent business review of the plan by Alvarez & Marsal, added the people, who asked not to be named.
Representatives for CLN and PwC did not respond to requests for comment, while a spokesperson for Alvarez & Marsal declined to comment.
CLN has some pressing debt deadlines to address: the company has a €50 million ($55 million) bond due in November and held by Assicurazioni Generali SpA. On top of that, its capital structure also includes over €300 million of debt to banks, according to the latest available annual report for the company seen by Bloomberg News.
The metal component manufacturer is feeling the hit from an operational slowdown at its client Stellantis. The carmaker has just ousted its finance chief in a management overhaul, after slashing its forecasts for the year in a slowing and more competitive auto market.
CLN was founded after the Second World War by Mario Magnetto and is still controlled by the founding family with a 75% stake, while the remainder is held by steelmaker ArcelorMittal SA.
Based near the Turin headquarters of Fiat — now one of the Stellantis brands — CLN has expanded in Europe, Latin America, China and South Africa in recent years.
--With assistance from Alberto Brambilla.
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