Auto supplier Plastech Engineered Products Inc. plans to ask a federal bankruptcy judge Friday to approve the sale of its assets at an auction next month.
Dearborn-based Plastech, which makes door panels, consoles, bumpers and other products, filed for bankruptcy protection Feb. 1. In papers filed last week with the U.S. Bankruptcy Court in Detroit, Plastech said it wants to sell off its business units and other assets at a June 16 auction.
Plastech said it is in negotiations with several potential bidders, including Milwaukee-based auto supplier Johnson Controls Inc., but has not yet accepted any offers. Plastech said its major creditors support the sale of its interiors business to Johnson Controls, which is Plastech's largest customer.
If the court approves Plastech's plan, bids could be submitted until June 13. Plastech would hold the auction June 16 and seek court approval for any potential sales on June 18.
Some creditors already are opposing the plan. General Electric Capital Corp., which holds the leases on some of Plastech's equipment, said in a court filing Wednesday Plastech needs to revise its plan to clarify what will happen to its unexpired leases. Otherwise, Plastech may not be able to maximize the value of its businesses, GE Capital said.
Plastech, which supplies General Motors Corp., Ford Motor Co. and Chrysler LLC, filed for bankruptcy protection after Chrysler announced it was canceling its contracts because of a pricing dispute. Chrysler has sued Plastech in an effort to retrieve tools it owns that are used to make Chrysler parts.
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