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DETROIT BUSINESS MAIN 01-15-07 a 1 CDB.Qxd DETROIT BUSINESS MAIN 01-15-07 A 1 CDB 1/12/2007 6:38 PM Page 1 ® http://www.crainsdetroit.com Vol. 23, No. 3 JANUARY 15 – 21, 2007 $2 a copy; $59 a year ©Entire contents copyright 2007 by Crain Communications Inc. All rights reserved THIS JUST IN Delphi gets OK to take DEQ may delay $3.4B Cerberus-led offer Troy-based Delphi Corp. received approval Friday from U.S. Bankruptcy Judge Robert Drain to move forward with a $3.4 billion investment package from a group of investors rules about ships led by New York City- based Cerberus Capital Man- discharge ballast water into the Great Lakes are also agement L.P. PHOTO COURTESY OF FAURECIA required to install systems to treat the water to elim- Cerberus’ offer provides Ballast water wouldn’t Arvin Paschal secures components to inate the foreign pests that have hurt native species the capital necessary for a front-end bumper module at Faurecia in the Great Lakes and caused Delphi to exit bankruptcy North America's Sterling Heights have to be treated economic and environmental and is preferred by Delphi assembly plant, which began damage. over a competing $4.7 bil- production in August for Daimler- BY AMY LANE Some 100 oceangoing vessels lion offer proposed in De- ChryslerAG. CAPITOL CORRESPONDENT docked at Michigan ports in 2006, cember by Dallas based but the majority did not discharge Highland Capital Manage- LANSING — Michigan may modify new environ- ballast water. The DEQ estimates ment L.P., said Claudia Pic- mental rules aimed at reducing foreign invaders Faurecia may that only four ships would be like- cinin, Delphi’s financial like zebra mussels and gobies in the Great Lakes. ly to fall under the treatment re- communications manager. Some cargo companies had argued that the rules, quirement. Piccinin said Delphi which took effect Jan. 1, would force them to bypass But John Jamian, president of evaluated Highland’s offer Jamian buy to grow, Michigan ports this shipping season. the Seaway Great Lakes Trade Asso- and was concerned about All oceangoing vessels are now required to apply ciation, a Birmingham-based group representing several issues and said it for a Michigan Department of Environmental Quality per- may re-evaluate its view of mit before they can use Michigan ports. Ships that See Ballast, Page 29 the Highland offer if those but only if it issues are addressed. She declined to say what the is- sues are. Cerberus can either fits plan walk away or provide more time for its offer if Delphi does not reach a contract BY BRENT SNAVELY agreement with the United CRAIN’S DETROIT BUSINESS Jazzing things up Auto Workers and its other unions and its biggest cus- James Orchard, president of tomer, General Motors Corp., Faurecia North America, said the New Music Hall director by Jan. 30, Piccinin said. French interiors supplier may Delphi filed for Chapter consider acqui- 11 bankruptcy in October sitions as it in- acts quickly to rejuvenate 2005 and is trying to exit creases its mar- bankruptcy by midyear. ket share, but — Brent Snavely the company ticket sales, endowment will be selective and plans to BY SHERRI BEGIN Covansys says it will file grow mostly by CRAIN’S DETROIT BUSINESS 3Q report from 2006 soon winning addi- tional contracts It’s taken Vincent Paul only six months to Farmington Hills-based Orchard with the Big shake things up at Music Hall Center for the Per- Covansys Corp. (Nasdaq: Three. forming Arts Inc. CVNS) said Friday that it “Because of a But then, he’s been planning how he’d run a had completed its reassess- AUTO SHOW lot of the distress theater for more than two decades. ment of revenue-recogni- Highlights from in the supplier Until his family moved to Farmington Hills tion policies and would the 2007 North market — partic- when he was 9, Paul lived near Hitsville USA soon file its 10-Q earnings American ularly in this re- in Detroit. After earning his degree in theater report for the third quarter International gion — we see from Michigan State University, he headed to of 2006. Auto Show, that as advanta- New York. On Nov. 9 the company Page 24. geous for Faure- For the next 22 years, while serving as a announced it would delay cia to grow, and stage manager, tour director and executive di- the report after being ad- possibly grow inorganically,” Or- rector for various organizations, Paul toured vised by its accounting chard said. “But we are not going to nationally and internationally with perform- firm, BDO Seidman L.L.P., to do so on a stupid basis. I don’t sub- ers. At each new venue, he’d take note of how examine some accounting scribe to the Stockman model, so things were done, from marketing to sponsor- policies for fixed-price and we are not going to do that.” ships to education programs. multiple-element con- The “Stockman model” is a ref- “When I ended up becoming president of JOHN SOBCZAK erence to former Reagan adminis- Music Hall, I knew what I was going to do,” See This Just In, Page 2 Vincent Paul is in his dream job: Running the Music Hall Center See Faurecia, Page 27 for the Performing Arts. See Music Hall, Page 28 Wireless companies beef up networks, services to meet CRAIN’S LIST business demands, Largest accounting firms, NEWSPAPER Page 11 Page 16 DETROIT BUSINESS MAIN 01-15-07 A 2 CDB 1/12/2007 6:59 PM Page 1 Page 2 CRAIN’S DETROIT BUSINESS January 15, 2007 The company said that those mission staff as an intern more lion in 2005; and Greektown fin- September, is complete. THIS JUST IN shutdowns will cost it about $200 than 16 years ished 2006 with revenue of $345 Asahi Tec is investing $205 mil- million and the charges will be ago. million, compared with $335.6 mil- lion of equity in Metaldyne and ■ From Page 1 taken in the fourth quarter of The planning lion a year earlier. Metaldyne’s existing credit and 2006. The company declined to commission re- — Robert Ankeny receivables facilities are being re- tracts, most of which were divest- identify the location of the affect- views and financed with new credit of $670 ed as part of the sale of the compa- ed plant or plants. makes recom- million. ny’s state and local government — Brent Snavely mendations to Salvation Army dedication set Asahi Tec’s major shareholders business during the second quar- Detroit City Coun- The Salvation Army was expected are Belgium-based RHJ Internation- ter last year. cil on rezoning to dedicate its renovated, $24-mil- al SA, Japan-based Mitsui & Co. Ltd. The company said the reassess- Doner gets Electrolux contract and other plan- lion Southeast Michigan Adult and Chuo Mitsui Growth Capital In- ment will not result in restating Southfield-based advertising ning-related Rehabilitation Center in down- vestment Limited Partnership II as any financial statements but that Todd agency Doner is now the agency of matters. town Detroit on Sunday. well as Metaldyne’s largest stock- its third-quarter statement may record for Bloomington, Ill.-based Todd takes over from deputy di- The 355,000-square-foot center holder, Grennwich, Conn.-based differ from preliminary informa- vacuum cleaner-maker Electrolux rector Marcus Loper, who served is a short-term residential pro- Heartland Industrial Partners L.P. tion reported on Nov. 14. Home Care Products North America. as interim director since Bruhn gram for men who abuse drugs — Brent Snavely — Tom Henderson The first campaign, rolling out retired last March. Loper plans to and alcohol. Amenities at the 300- American Axle to spend about the new “Electrolux Intensity” retire effective March 26. bed center include, a 700-person Cooper-Standard to close vacuum, begins today and in- M. Rory Bolger, a 21-year veter- dining room, a computer lab and a $140M on worker buyouts cludes television, print and online an with the commission staff, was gymnasium. Ohio fluid systems plant Detroit-based American Axle & components. appointed acting deputy director Renovations began in 2004 at as of Jan. 1. the building, which was con- Novi-based Cooper-Standard Au- Manufacturing Holdings Inc. (NYSE: Doner declined to say how tomotive Inc. said Friday that it AAM) said Thursday that 1,473 much the Electrolux billing is — Robert Ankeny structed in 1918. The rehabilita- tion center, which has been at the plans to close its Archbold, Ohio, employees have accepted a buyout worth. The account includes fluid systems facility by the third offer that will eventually save the strategic planning, media and cre- site since 1963, remained open Casino revenue tops $1.3B during construction. quarter of 2008. company money, but will initially ative. Existing production and manu- Detroit’s three casinos logged — Sheena Harrison cost about $140 million. Doner has been agency of facturing equipment will be trans- their best year in 2006, passing The program was offered to all record for Electrolux’s separate ferred to other Cooper-Standard $1.3 billion in revenue, the Michi- United Auto Workers at American Eureka brand since 2005. Asahi Tec finishes acquisition operations in North America. gan Gaming Control Board reported Axle plants in Detroit and Three — Bill Shea The Archbold operation em- Friday. This topped 2005’s total Rivers, Mich., and Buffalo, of Metaldyne Corp. ploys approximately 215. Cooper- Tonawanda and Cheektowaga, all Detroit appoints new planner revenue of $1.23 billion by $75 mil- Plymouth-based Metaldyne Corp. Standard makes automotive body- in New York. lion, an increase of more than 6 said Thursday that its agreement sealing systems, fluid-handling American Axle will take Marcell Todd Jr.
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