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GM Supplier of 45 Years Files For Chapter 11 Bankruptcy

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Clark-Cutler-McDermott Co., a supplier of General Motors parts for 45 years, filed for Chapter 11 bankruptcy protection on Thursday, July 7th, according to court documents.

The supplier makes a number of parts that are used in products manufactured by General Motors North America, including insulators for dashboards, wheelhouses, and fenders. Automotive News points out that the bankruptcy filing could create problems for GM NA production moving forward as the automaker has no other supplier for the parts manufactured by CCM.


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“There is a court hearing on Wednesday to address this issue and we anticipate no impact to GM’s supply between now and then,” GM spokesman Pat Morrissey told Auto News in an emailed statement.

General Motors is seeking relief from the U.S. Bankruptcy Court District of Massachusetts, Eastern Division in order to acquire CCM’s equipment, tooling, and any completed products, which would minimize the impact on GM’s production. CCM, however, is seeking approval to break its contract with GM and sell off its remaining assets.

According to lawyers representing the automaker, General Motors would incur millions of dollars of losses “per plant per day,” meaning that GM would then pursue a claim against CCM “in such an extraordinary amount that there would be a massive dilution in the potential recoveries for the debtors’ unsecured creditors.” In layman’s terms: if CCM costs GM money, GM would take them for everything they are worth and more.

Auto News also notes that GM provided secured loans to CCM in March, and that GM later won a restraining order forcing CCM to resume production after it shut down plants on June 17th.


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News Source: Automotive News (subscription required)