Tuesday, February 5, 2008

Chrysler, Plastech reach agreement

Creditors want to see terms of the deal DETROIT -- Chrysler LLC and bankrupt supplier Plastech Engineered Products Inc. have reached an interim agreement to resolve a parts dispute between the two companies, an attorney representing the supplier said this morning. The pact will allow the automaker to resume production at four idled plants and avoid shutdown of all its assembly operations.

Gregg Galardi, a lawyer for Plastech, told U.S. Bankruptcy Judge Phillip Shefferly that the two companies had reached a deal that will run through Feb. 15.

Chrysler shut four plants Monday, Feb. 4, after Plastech stopped shipping parts after filing for Chapter 11 protection on Friday, Feb. 1. Chrysler's plants operate on a "just-in-time" basis, under which parts are shipped as needed, so any disruption would be immediately felt. ...

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