Chrysler Grinds To A Halt As Supplier Enters Ch. 11

Law360, New York (February 4, 2008, 12:00 AM EST) -- Chrysler LLC began shutting down its American factories after one of its major auto parts suppliers, Plastech Engineered Products Inc., filed for bankruptcy Friday in the wake of losing its Chrysler contracts.

According to a brief filed by Plastech on Friday in the U.S. Bankruptcy Court for the Eastern District of Michigan, the company had been on the verge of entering a new accommodation agreement with Chrysler and other customers on Thursday when Chrysler suddenly backed out.

In January, Chrysler warned Plastech in a letter that...
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