February 13, 2008

Plastech Gets Reprieve, For Now

Looks like Plastech will be getting the needed funding to continue business through the end of Feburary.

Plastech Engineered Products Inc. this afternoon received financing that will allow it to continue operations, including making payroll, though Feb. 27.

The Dearborn-based supplier's banks will provide it with $18 million. Plastech customers General Motors Corp., Ford Motor Co. and Johnson Controls Inc. provided funds to back the financing.

There is no report on whether Chrysler will get it's tooling back or not but GM and Ford have come out in support of Chrysler bid to get their tooling back.

GM "strongly supports" Chrysler's assertion of a right to take back the tooling from bankrupt Plastech, GM attorney Robert Weiss said today at the hearing in Detroit. Ford lawyer Stephen LaPlante also endorsed Chrysler. Both declined to comment further.
Posted by Quality Weenie at February 13, 2008 06:44 PM | TrackBack