Alapont To Remain As Federal-Mogul CEO Following Bankruptcy
Federal-Mogul Corp. CEO Josè Maria Alapont says he will remain with the supplier for the long term after its exit from more than six years of bankruptcy protection on Dec. 27. Alapont has been CEO of the company since March 2005. It filed for bankruptcy protection amid a number of asbestos lawsuits in October 2001.
Alapont told reporters recently that his management team has maintained positive relations with investor Carl Icahn. Icahn has 60 days to decide if he is going to use his stock options. If he uses the options, Icahn could control as much as 76 percent of Federal-Mogul stock and eight of its nine board positions.
“Between Carl and myself it has been very constructive and very positive since day one, and that is the way I expect to carry on,” Alapont told reporters. The auto parts maker has achieved profitability with some of its customers, products and geographical business. The company plans to list its shares on a stock exchange in the coming weeks. Its board meets shortly and will choose a chairman at that time.
The final cost for Federal-Mogul’s bankruptcy over the past six-plus years is estimated to be about $700 million.
The first phase of the company’s five-year reorganization program resulted in 20 plant closings, and another 10 plant closings are expected. Alapont has not identified which plants would close.
During the five years ending in 2010, the supplier wants to increase the percentage of manufacturing operations in “best-cost countries” from 15 to 35 percent. The company plans to look for potential mergers and acquisitions, possibly in electronics, according to Alapont.
For more information about Federal-Mogul visit www.federal-mogul.com