In a court filing attributed to CEO Fritz Henderson yesterday, General Motors said that any major delays preventing a rapid exit from Chapter 11 protection in its bankruptcy proceedings would be a “fatal” blow to many of the Detroit automaker’s core suppliers.
“Many of GM’s suppliers are already in the midst of a severe liquidity crisis, which has only been exacerbated by the current shutdown of certain GM production facilities,” Henderson said.
According to the Motor and Equipment Manufacturers Association, at least 15 suppliers have filed for bankruptcy or had their assets seized this year alone – and it appears that Lear Corporation, a major seating and electronics supplier, is headed towards a “pre-packaged” bankruptcy plan approved by its creditors.
“If … (the) new GM is not able promptly to commence operations, many of GM’s suppliers will have further draconian reductions in revenue and no income,” Henderson said.
