Oxford Automotive to miss Dec. 15 interest payment on senior subordinated notes

New York, Dec. 12 - Oxford Automotive, Inc. said it will not make the interest payment due Dec. 15 on its 10 1/8% senior subordinated notes maturing 2007.

The Troy, Mich. auto parts maker said in a filing with the Securities and Exchange Commission that it recently entered into a forbearance agreement with the lenders on its credit facility and as part of that forbearance the administrative agent for the facility provided a payment blockage notice to Oxford and the notes trustee. Citicorp USA, Inc. is the administrative agent. The blockage notice is effective for 180 days unless terminated earlier or the defaults are waived.

Oxford has a 30-day grace period before the non-payment of interest becomes a default.

Oxford said it is continuing to negotiate with the bank lenders on developing a consensual restructuring of its outstanding debt obligations.

The forbearance agreement, which is dated Dec. 8, 2001, runs through Jan. 14, 2002. Under terms of the agreement, the lenders will not exercise the remedies available to them as a result of Oxford's defaults on the facility.

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