Chrysler Appeals Plastech Bankruptcy Ruling
Crains Detroit Business is reporting that Chrysler L.L.C. will appeal a Detroit federal bankruptcy court's order that it cannot retrieve equipment from the premises of Plastech Engineered Products Inc. Plastech filed for bankruptcy protection last month. Chrysler has filed the notice of appeal with the bankruptcy court that is required under the Federal Rules of Bankruptcy Procedure.
This case arises out of a lawsuit that Chrysler filed against Plastech seeking to recover in excess of $167 million worth of tooling machinery Chrysler owns that Plastech used to manufacture parts for Chrysler. Chrysler had requested the bankruptcy court to grant a stay that would allow it to recover the equipment in spite of bankruptcy litigation rules that prevent non-bankruptcy legal proceedings against parties that have filed for bankruptcy.
However, the bankruptcy court denied Chrysler's motion and ruled that Plastech's reorganization efforts could be harmed if Chrysler removed its equipment at this point in time.
