Replies to post #94 on American Axle & Manufacturing (AXL)

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American Axle & Manufacturing Holdings Inc. said Tuesday it reached agreement to receive as much as $210 million in funding from General Motors Co. as the car-parts maker works to avoid bankruptcy.

American Axle is the principal supplier of driveline components to GM for its rear-wheel-drive pickup trucks and sport-utility vehicles made in North America. It also supplies all the axles for these vehicles. Sales to GM account for more than 75% of American Axle's revenue.

This is the first time GM has given financial assistance to American Axle. The auto maker has no ability to shift orders to other axle makers if American Axle were to encounter production problems.

American Axle said it reached an agreement in principle for GM to pay $110 million to cover contracts canceled due to the car maker's bankruptcy in June.

The company also said GM will provide a second-lien term loan of as much as $100 million. American Axle will have the right to make multiple draws from the loan through Sept. 20, 2013.

The GM arrangement hinges on American Axle renegotiating loan terms with its creditors. The company faces an Aug. 31 deadline to do so after its lenders granted a second waiver extension on its revolving credit.

American Axle, based in Detroit, has endured drastic demand cutbacks as GM and other car makers reduced production for almost a year amid the recession. The reduction caused many parts makers, such as Visteon Corp., to seek Chapter 11.

Write to Jeff Bennett at [e-mail] and Kate Haywood at [e-mail]

Printed in The Wall Street Journal, page B2