Jackson Automotive Systems produces various other engine components, engine cooling systems, fuel injection and transfer systems, and automotive parts for sophisticated heat and air conditioning systems and it furnishes them in Michigan mainly to the automotive industry. Just like other OEM suppliers within this industry, Jackson stopped its manufacturing operation after the fiscal crisis in 2008. By 2013, the company is back to operating at capacity.
The firm is unable to refund its outstanding debt to the bank and thus, experiences a bottleneck in production of some key electronic components.. In addition, the firm now must replace aging equipment to avert future creation delays and delayed replacing gear during the downturn. The bank is approached by the president for an additional loan to cover the new equipment purchase and for an extension, to repay a loan..
Publication Date: 08/05/2013
This is just an excerpt. This case is about Finance
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