Manufacturers Beware
Bankruptcy May Delay Taking Possession of Your Tooling
Presenters:
Jim Hopple, Schottenstein Zox and Dunn, Partner in the Creditors’ Rights and Business Restructuring Practice Group
Linda Mindrutiu, Schottenstein Zox and Dunn, Associate in the Creditors’ Rights and Business Restructuring Practice Group
Tough economic times, particularly in the automotive industry, have forced numerous manufacturers and processors in the automotive supply chain into bankruptcy. Often the business filing bankruptcy will have possession of molds or tooling owned by another entity used to make product for that customer.
A recent decision by the Bankruptcy Court in the Plastech Engineered Products, Inc. case in Michigan permitted Plastech, as the bankruptcy debtor, to keep possession of Chrysler’s tooling notwithstanding Chrysler’s attempts to move the tooling to another source.
Please join us as Jim and Linda discuss the details of this decision and its potential adverse effects.
