VALEO ELECTRICAL SYSTEMS, INC.

Case Highlights

• Evaluated impact and efficacy of various strategic alternatives
• Worked with management to develop business plan for downsized business
• Assisted in development of a successful Plan of Reorganization
• Participated in union negotiation

Case Narrative

Valeo Electrical Systems, Inc. (“VESI”) was both a Tier I and Tier II automotive parts manufacturer, as well as a significant supplier of products to the automotive after-market.  VESI’s operating divisions include motors and actuators, wiper systems, and airflow products.  DSI was requested to serve as financial advisor to the company and as a direct liaison to VESI’s French parent, all in connection with evaluating the impact and efficacy of a range of strategic alternatives.  In this capacity, DSI worked closely with management in the development of a business plan that included the “rightsizing” of the business.  When a Chapter 11 petition became the appropriate course of action for the company, DSI assisted in preparing for all of the operational, financial and reporting aspects of this type of proceeding and advised the company on similar matters throughout its 10-month reorganization process.  In formulating the successful plan of reorganization, DSI participated in negotiations with union representatives and assisted management in evaluating the financial impact of proposed modifications to collective bargaining agreements.