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"When a troubled business is unable to service its debt or pay its creditors, it or its creditors can file with a federal bankruptcy court for protection under either chapter 7 or chapter 11.
In chapter 7, the business ceases operations and a trustee sells all of its assets and distributes the proceeds to its creditors. This is done in accordance with statutory defined priorities.
A chapter 11 filing, on the other hand,
is usually an attempt to stay in business while a bankruptcy court supervises the "reorganization" of the company's contractual and debt obligations. http://en.wikipedia.org/wiki/Chapter_11And as well as Ford, which appears to be their largest customer - Toyota is reporting continued supplies from Plastech
"DETROIT, Feb 4 (Reuters) - Toyota Motor Corp (7203.T: Quote, Profile, Research) continues to receive parts from Plastech Engineered Products Inc, which has filed for bankruptcy court protection, a spokesman said on Monday.
"We have had no interruption in supplies," Mike Goss said. "Plastech has told us that they will continue production and we will monitor the situation closely."
Chrysler LLC has closed four of its U.S. plants due to a dispute with Plastech.
/end/
http://www.reuters.com/article/rbssConsumerGoodsAndRetailNews/idUSN0458262420080204I find it interesting the way that is worded:
Chrysler LLC has closed four of its U.S. plants due to a dispute with PlastechA large corporation doesn't close that many plants because of just one supplier dispute - I think Chrysler wanted to close those plants for a different reason; or reasons, and this way they get to ignore the unions concern/power.
OH, and GM is still getting parts also - -
"DETROIT, Feb 4 (Reuters) - General Motors Corp (GM.N: Quote, Profile, Research) is still receiving parts from Plastech Engineered Products Inc, which has filed for bankruptcy court protection, a GM spokesman said on Monday.
"We are still getting parts from Plastech and production has not been impacted," Frank Sopata told Reuters.
http://www.reuters.com/article/rbssConsumerGoodsAndRetailNews/idUSN0456923320080204