Progressive Moulded Products has become the latest motor parts company to file for Chapter 11 bankruptcy protection, inflicting losses on its owner, private equity firm Thomas H. Lee Partners and lenders led by Goldman Sachs. Thomas H. Lee is expected to see its $200m investment go to zero while Goldman, which provided a slug of junior, mezzanine debt is also likely to lose everything. The company has about $550m debt.

But Progressive’s troubles are not simply those of a private equity-owned firm with too much debt accrued in happier days so that its owners could pay themselves dividends. Instead, Progressive is a victim of the lethal combination of tight credit and rising oil prices. Progressive, which makes plastic injection moulding systems for Detroit’s big three carmakers is one of many parts companies caught in the vice of higher costs and lower sales.