GM delayed bankruptcy is 'fatal' for the suppliers

Posted on Sunday, 28 June 2009 , 01:06:36 byEmil

Filed under gmdelaybankruptcyfatalsupplierGM

GM delayed bankruptcy is 'fatal' for the suppliers

On a court filing that was attributed to Fritz Henderson - CEO yesterday, GM stated that any important delays preventing a fast escape from Chapter Eleven protection on the proceedings of bankruptcy would be quite a 'fatal' blow for a big number of the Detroit manufacturer's core suppliers.

So, Motor and Equipment Manufacturers Association said that 15 suppliers at least have filed in for the bankruptcy or they have all the assets seized at the moment – and it looks like Lear Corporation, an important seating plus an electronics supplier, will be heading right through a 'pre-packaged' bankruptcy action approved by all the creditors. 'Many of GM’s suppliers are already in the midst of a severe liquidity crisis, which has only been exacerbated by the current shutdown of certain GM production facilities affirmed Henderson.

'If … (the) new GM is not able promptly to commence operations, many of GM’s suppliers will have further draconian reductions in revenue and no income' said Henderson.