Plastech Bankruptcy: Collateral Damage
The more we look into the Chrysler vs. Plastech debacle– wherein the automaker and the parts supplier are locked in deadly combat over mission critical tooling– the more it appears that the Plastech ship has been sinking for quite some time. Canplastics.com, reports that Plastech owes J&J Tool & Mold of Ontario more than $1m for injection molds. The Canadian company's vice president says Plastech stopped making payments last November. "We've had to scrounge the last several months to try and find additional customers to replace that work," Mike Altenhof reveals. "For a small company, it's been terrible… we're in a cash crunch right now." For Plastech, things aren't so hot either. When the supplier filed for bankruptcy, they declared that they owed creditors some $488m.
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Silence, huh?