Auto-conditioning companies are facing big changes, including new rules limiting the number of people in the facility to prevent injuries, according to people familiar with the talks.
Auto-conditioner wholesaler Lyle H. Schmitz, whose family-owned firm is part of the Big Three, is set to be sold to an independent buyer in mid-December, people familiar of the matter said.
It’s unclear if he will remain the company’s CEO.
The sale is expected to generate millions of dollars for Lyle and other executives.
The Lyle family has been embroiled in a battle with the federal government over how much it can save by buying Lyle, a major rival of Lyle Auto, which owns a separate auto-conditioners business.
The U.S. Supreme Court on Thursday declined to hear an appeal by Lyle.
Lyle has also said it’s possible the sale could lead to higher prices for consumers.
The Lyle company, which is in the middle of its second bankruptcy filing, has also been facing a major loss in recent years, partly because of the government shutdown and the Great Recession.
In February, it filed for Chapter 11 protection after paying $2.5 billion in $20.6 billion bonds.
Lampshaded by President Donald Trump, Lyle said at the time that it has been “doing very well” with its businesses and that the government “hasn’t been able to stop us from doing the things we are doing.”
Lyle’s shares dropped more than 4% in the closing bell on Wednesday, closing at $7.87.
LTM Holdings Inc., the parent of LTM, did not immediately respond to a request for comment.
The companies’ biggest rival, American Auto Alliance Inc., also has a pending bankruptcy.
American Auto Alliance, which has more than 20 million cars on the road and more than 100,000 employees, said in February it was seeking to reduce its workforce by nearly 1,200 positions as it works to restructure its business and make its suppliers competitive.
The company said it expects to begin reducing its workforce this month.
American has been hit by the Great Stagnation as a result of the recession, but it said Wednesday it is looking to raise money through new sources.
American has raised $17 billion in new debt.