It's been a while since we reported on Plastech's bankruptcy. But things are starting to get interesting once again. The Chrysler interior supplier and its creditors recently agreed on three options for bringing the troubled (as in that's MY tooling) partsmaker out of bankruptcy. Plan A: sell the whole kit and caboodle to one of its biggest customers, Johnson Controls (JCI). Plan B: liquidation. Plan C: restructure and emerge as an independent company (never gonna happen). Meanwhile, Plastech's bankruptcy judge is set to rule on an $87m short-term finance plan (bankrolled by JCI and the Detroit automakers) to keep the lights on. Even though Plastech lawyers say the firm "won't make it past today" without the cash, there are (as ever) issues. For one thing, it doesn't cover up to $10m in administrative costs. For another, the UAW (them again!) says the plan doesn't include "funding for severance payments and other labor expenses related to the closing of any plants." Which reminds us that Plastech is, in fact, closing its Shreveport, LA plant and "one or two others." Bad juju.
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Plastech closes Leamington, Ont plant.
http://www.canada.com/windsorstar/story.html?id=375261f8-4664-4615-aad7-7c138d24b934&k=30844
For another, the UAW (them again!) says the plan doesn’t include “funding for severance payments and other labor expenses related to the closing of any plants.”
I know this debacle isn’t solely their fault, but does the UAW strike anybody else as delusional?
They strike me as dillusional. In the case of a Chapter 7 bankruptcy, just where would severance packages fall in terms of payment? To say you can’t get around paying our severance packages for plant closings by going bankrupt seems beyond assinine.
If the judge says “fugedaboudit” and declares Chapter 7, does that mean Chrysler can’t have their tools and dies?
Just curious if anyone out there knows.
The company is going bust and the Union is saying hey, what about me? Wow.
jthorner:
The company is going bust and the Union is saying hey, what about me? Wow.
Correction: GONE bust. And you’re surprised by this? All of Detroit’s listening to WII-FM: What’s In It For Me. Maybe all of humanity.
Wow, Robert, you’re getting to be almost as cynical as I am…
But then again, someone once told me that “if you aren’t a cynic by age 25, you haven’t been paying attention” and so that makes me doubly cynical, I guess.
The pumps are not going to keep up with the water on this one. Once other companies see this, should they emerge with any skin left, then bankruptcy is going to look pretty freakin’ good for a change.
It would all be solved if people just bought Chrysler’s ugly cars.