Although courts ruled in favor of Plastech Engineered Products Inc. earlier this year, it appears as though the U.S.-based plastic supplier’s legal troubles are far from over. General Motors has asked a U.S. bankruptcy judge for permission to take its tooling operations from Plastech in the case that the supplier fails to deliver parts to GM.
According to Automotive News, GM is concerned about “the limited amount and duration” of Plastech’s interim financing. Because of the supplier’s financial situation, General Motors feels that a stoppage in supply is a very real possibility, which could result layoffs and a significant loss of production.
Plastech filed for Chapter 11 bankruptcy protection on February 1st of this year.
If GM is granted permission, it would be allowed to move its tooling operations — including machinery — to another supplier in the case that Plastech fails to deliver parts to GM.
Chrysler was denied permission in a similar case last month. However, Chrysler sought to take its tooling operations from Plastech immediately whereas GM is only looking for permission to move its tooling operations if Plastech fails to deliver parts.
