Articles tagged with: automotive suppliers

supplier bankruptcy recurring issues for bankruptcy creditors in the automotive sector

Grede Foundries – First Day Bankruptcy Motions Offer Suppliers No Relief

Date: June 30, 2009 Author: burbageweddell

Grede Foundries has filed 10 first day motions (3 procedural and 7 substantive). The 7 substantive motions are listed below. The one of special interest is item 6, which deals authorization of Grede to enter into accomodation agreements with customers. The presence of these agreements in an automotive supplier bankruptcy is a pretty good indication that there was a major supply disruption risk.

Grede has filed a 503(b)(9) procedural motion (which was not filed as a motion to be heard at the first day hearing) that seeks to preclude suppliers from filing 503(b)(9) motions and only permit the use of the general claims procedure. This motion affords suppliers no substantive relief in terms of accelerated payment of 503(b)(9) claims. The motion is actually anti-supplier. It seeks to postpone and procedurally restrict the exercise by suppliers of their rights under 503(b)(9).

Grede Foundries – Largest Unsecured Bankruptcy Creditors

Author: burbageweddell

Grede Foundries, Inc. (“Grede”) has filed a single debtor bankruptcy in the US Bankruptcy Court for the Western District of Wisconsin (Case No. 09-14337). Grede is one of the largest cast iron foundries in the United States. It produces ductile and gray iron and specialty metal parts for the automotive, heavy truck, off-highway, diesel engine and industrial markets.

Of the 20 largest claims of unsecured creditors, 16 claims are identified at trade debt.

GM Bankruptcy – Selective Cure List and Substantive Objections

Date: June 18, 2009 Author: burbageweddell

There were approximately 479 objections filed by the June 15, 2009 deadline by suppliers and other trade creditors to GM’s proposed cure costs (click link to see list). An additional 75 objections were filed after the deadline and on or before June 20, 2009. As in the case of Chrysler, the majority of the objections were to cure cost amounts. However, as noted in our prior post, the cure cost procedures also provided a frequent basis for objection. As a final irony, Chrysler’s objection was among the most vehement (as well as apparently a day late). In the following post, we discuss the substantive objections and provide a sampling of the differences between GM’s cure costs and cure costs computed by suppliers.

GM Bankruptcy – For Suppliers Chrysler Bankruptcy Lesson 1

Date: June 2, 2009 Author: burbageweddell

(Update: Since the original post date we have added two additional posts on the GM Cure Cost Procedure and the Supplier Objections that were filed to GM Cure Costs. Please Click the preceding link to see those posts.)

The Chrysler bankruptcy taught suppliers several lessons. Lesson 1 – SUPPLIERS, BE READY TO CONFIRM THE CURE AMOUNT FOR THE ASSIGNMENT OF GM SUPPLY CONTRACTS. Consider the years that your company has worked with GM. If your company got a cure cost notice from GM today, would it be ready to say “If GM pays my company this amount, my company has no further claims against GM, and if it does have additional claims, we give them up?” A lot of suppliers in the Chrysler bankruptcy found out the hard way that they were not ready to respond; the pain just has not hit yet.

Metaldyne Bankruptcy – A Dismal Picture for Suppliers

Date: May 30, 2009 Author: burbageweddell

A bleak picture emerges for bankruptcy creditors in this bankruptcy of a top 50 Tier 1 automotive supplier. Metaldyne Corporation and 30 subsidiaries (collectively referred to as “Metaldyne”) entered bankruptcy with between $60 million and $65 million in outstanding trade payables. A total of $36 million is due to suppliers on the 50 largest unsecured list. That means that smaller suppliers are going to take almost half of the potential loss.

Metaldyne Bankruptcy – Largest Unsecured Bankruptcy Creditors

Date: May 29, 2009 Author: burbageweddell

Metaldyne requested and was granted authority to file a consolidated list of the 50 largest unsecured creditors of the Metaydyne Corporation and its 30 affiliated Debtors (the “Top Unsecured Creditor List”) in lieu of a separate list for each of the Debtors. The amounts owed to each of the unsecured suppliers is listed as trade debt. We are seeing several very familiar automotive parts supplier names on this list. We are also seeing some of the listed debt to automotive parts suppliers as “disputed.” This is probably an indication of a claim of set off.

Metaldyne Bankruptcy – 31 Debtors and Petitions

Author: burbageweddell

Metaldyne Corporation and 30 affiliated entities (”Debtors”) filed a petitions in Bankruptcy Court for the Southern District of New York for relief under chapter 11 of title 11 of the United States Code. Contemporaneously with the filing of their petitions, the Debtors filed a motion requesting that the Court consolidate their chapter 11 cases for administrative purposes only under the Metaldyne Corporation case number 09-13412. The following are the names, case numbers and copies (as available ) of the bankruptcy petitions.

Visteon Bankruptcy – Largest Unsecured Bankruptcy Creditors

Author: burbageweddell

Visteon Corp. has filed a consolidated list of the 30 largest unsecured creditors of the Visteon Corp. and affiliated Debtors (the “Top Unsercured Creditor List”) in lieu of a separate list for each of the Debtors. The amounts owed to each of the unsecured suppliers is listed as trade debt. Visteon’s list is heavily populated with providers of electronic components and plastic compounds.

Visteon Bankruptcy – First Day Motions

Date: May 28, 2009 Author: burbageweddell

Visteon Corp. has filed 13 first day motions and the Affidavit of Willaim G. Quigley, III, Chief Financial Officer in Support. The motions include one critical vendor motion to authorize payment of certain pre-petition claims of suppliers. (Item 4 Below) The first day motions are:

Visteon Bankruptcy – Debtors and Petitions

Author: burbageweddell

Visteon Corporation and 30 affiliated entities (”Debtors”) filed a petitions in Bankruptcy Court for the District of Delaware for relief under chapter 11 of title 11 of the United States Code. Contemporaneously with the filing of their petitions, the Debtors filed a motion requesting that the Court consolidate their chapter 11 cases for administrative purposes only under the Visteon Corporation case number 09-11786. The following are the names, case numbers and copies (as available ) of the bankruptcy petitions.

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Articles tagged with: automotive suppliers

Grede Foundries – First Day Bankruptcy Motions Offer Suppliers No Relief

Grede Foundries – Largest Unsecured Bankruptcy Creditors

GM Bankruptcy – Selective Cure List and Substantive Objections

GM Bankruptcy – For Suppliers Chrysler Bankruptcy Lesson 1

Metaldyne Bankruptcy – A Dismal Picture for Suppliers

Metaldyne Bankruptcy – Largest Unsecured Bankruptcy Creditors

Metaldyne Bankruptcy – 31 Debtors and Petitions

Visteon Bankruptcy – Largest Unsecured Bankruptcy Creditors

Visteon Bankruptcy – First Day Motions

Visteon Bankruptcy – Debtors and Petitions