Cadence is the latest in a string of automotive supplier bankruptcies, reflecting the economic woes of the nation's manufacturing sector. A study issued this month by consultant Grant Thornton LLP said as many as one-third of suppliers face the risk of bankruptcy. On Aug. 12, Texas-based Intermet Corp., which makes metal castings for automotive and other industrial companies, filed for bankruptcy a second time after first filing in 2005. Cadence has 4,200 employees in the United States, Hungary and the Czech Republic, with six plants in Michigan and Indiana, along with several other facilities in Michigan. The company was formed in 2005 from the assets of Venture Holdings, a company then in bankruptcy. Its two largest customers are Chrysler LLC and GM. Strikes, volume loss hurtCadence said it is trying to sell both its North American and European operations. The European units are not part of Tuesday's bankruptcy filing. The company consolidated operations from about a dozen plants to a 735,000-square-foot facility in Chesterfield Township. It opened in mid-2006 in a former Visteon factory on nearly 40 acres. That plant provides interiors for Chrysler's Jeep Grand Cherokee and Jeep Commander. The company said its revenue was hurt by strikes affecting GM and reduced volumes at Chrysler that resulted in a 20-percent drop in sales. Both GM and Chrysler have agreed to help Cadence operate in bankruptcy, in part by speeding up payments owed to Cadence and making other 'financial accommodations,' Cadence said in a court filing. Both automakers have agreed to not to seek to 're-source' business while Cadence seeks to sell its operations by year's end. 'We're in the middle of a sale process and (filing for bankruptcy) is something we had to do to continue operations,' said Russell Chick, a company spokesman. Cadence designs and produces interior and exterior components, systems and modules -- including instrument panels, interior trim, consoles and cockpits, painted exteriors, doors/door modules and cargo management systems. Cadence reported assets of $10 million to $50 million. Its largest creditor is Chrysler, which is owed $9.9 million in cash it loaned Cadence, according to the court filing. The largest investor in Cadence is New York-based Venture Blocker Inc., a unit of HMC Ventures Inc. Investor Ron Burkle's Yucaipa Co. is another larger investor. Plan to keep jobs'The cause and effect in this situation is obvious and the cause is a clear set of external factors -- collapsing revenue and material costs increasing at double-digit rates,' said Jerry Mosingo, president and CEO of Cadence Innovation. 'We find the need to file for bankruptcy protection as a dreadful development, particularly given the commendable efforts of our workforce and the many sacrifices the Cadence Innovation team has made. The reality is that this groundswell of external factors and environmental change exceeds the flexibility of our business model.' Cadence Innovation said it expects to maintain staffing levels at its plants and support sites. The company said it will pay for ongoing operations from debtor-in-possession financing, and doesn't expect any disruption in supply to customers. You can reach David Shepardson at (202) 662-8735 or [email protected].