Sunday, July 17, 2016

"consequences that could have deep financial costs"

From the Franklin, MA radar comes the news about the bankruptcy filing by Clark-Cutler-McDermott:

"General Motors Co. resolved a dispute with financially troubled auto-parts supplier Clark-Cutler-McDermott Co. in a deal that averts a potential production shut down of some of GM North American operations. 
The agreement, approved by a federal bankruptcy court judge in Massachusetts on Wednesday, allowed GM to purchase equipment and inventory that the auto maker said it must have to avoid any production interruptions. 
CCM, which produced 175 parts for GM and is the Detroit auto maker’s only supplier of certain interior and acoustic insulation parts, also received court approval to terminate its contract with GM, clearing the path for CCM to sell its closed operations. 
The 115-year-old company has been a General Motors “Supplier of the Year” four times in the last seven years, but said the relationship soured as it absorbed losses of $12 million since 2013. The Franklin, Mass., company filed for bankruptcy protection on July 7, saying it was losing $30,000 a day as a result of its contract with GM."

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